[Edaily Reporter Kim Kyung-eun] On the 11th, NH Investment & Securities raised its target price for #Samsung C&T by 29% from 425,000 won to 550,000 won, citing expectations of rising investment asset values and increased dividends.
Lee Seung-young, an analyst at NH Investment & Securities, explained the rationale behind the target price hike, stating, “The value of investment assets such as Samsung Electronics and Samsung Life Insurance rose from 115 trillion won on April 29 to 139 trillion won on June 10, and we adjusted the discount rate relative to the target net asset value (NAV) from 45% to 40%.” The current stock price is trading at a 55.7% discount to NAV.
Shareholder returns were also highlighted. He stated, “According to Samsung C&T’s 2026–2028 shareholder return policy, the company plans to return 60–70% of dividend income from affiliates to shareholders,” adding, “A special dividend payment by Samsung Electronics is expected this year, which will lead to an increase in Samsung C&T’s dividend income and dividend payouts in 2027.”
Samsung Life Insurance (which holds an 8.5% stake in Samsung Electronics), in which Samsung C&T holds a stake, is also expected to see an increase in dividend income in 2027. If a special dividend is paid based on this, it is projected to contribute further to Samsung C&T’s 2028 dividend payout. The estimated dividend per share for 2027 is 13,000 won, more than four times this year’s projected figure of 3,000 won.
From a business perspective, the construction division is the key driver of momentum. With increased investment by clients, orders for high-tech projects such as P5 in Pyeongtaek are expected to rise, and profitability is projected to improve as high-tech sales gain momentum starting in the second half of this year. The expansion of the nuclear power business is also underway. The company is pursuing participation in large-scale nuclear power projects, such as Vietnam’s second nuclear power plant, Units 3 and 4 of Romania’s nuclear power plant, and Saudi Arabia’s nuclear power plant, as well as small modular reactor (SMR) projects in Romania and Sweden.
The analyst also cited the trend toward improved corporate governance as a basis for the narrowing discount. "Legislation mandating cumulative voting and strengthening the audit committee system is scheduled to take effect in the second half of the year, and additional governance-related momentum is expected from future revisions to the Inheritance and Gift Tax Act and the Capital Markets Act," the analyst stated. The assessment is that the trend toward a narrowing holding company discount will continue over the medium to long term.