[Edaily Reporter Kwon Oh-seok] NH Investment & Securities announced on the 15th that it is maintaining its “Buy” rating on #Samsung Life Insurance and raising its target price from 418,000 won to 450,000 won.

Jeong Jun-seop, an analyst at NH Investment & Securities, explained, “This reflects the increase in the value of non-financial holdings driven by the rise in Samsung Electronics’ stock price.” He added, “We calculated a per-share value of 450,000 won by combining the financial enterprise value—which rose from 22.9 trillion won to 23.3 trillion won—and the non-financial holding value—which increased from 52.1 trillion won to 56.6 trillion won—for a total of 80.0 trillion won.”
He explained, “The correlation between Samsung Life Insurance and Samsung Electronics’ stock prices is expected to remain entrenched for the time being. This is because the value of Samsung Life Insurance’s stake in Samsung Electronics (8.5%) has significantly expanded as a proportion of its total enterprise value.” He added, “While this serves as a strong driver of stock price growth during an uptrend for Samsung Electronics, it could conversely act as direct downward pressure during a correction in Samsung Electronics’ stock price.”
Researcher Jeong emphasized, “The key lies in how Samsung Life utilizes the special dividends from Samsung Electronics—specifically, how these dividends will contribute to shareholder value and the medium- to long-term corporate value of the financial sector.” He added, “Although the special dividend expected early next year is a one-time event, its scale significantly exceeds annual recurring profit. This must lead to returns for Samsung Life shareholders and reinvestment for the future.”
He added, “Only if the scale and direction are reasonable enough to satisfy shareholders can this lead to a meaningful increase in the corporate value of the financial division,” noting, “The company is expected to announce its value-enhancement policy no later than the annual general meeting in March next year, and these details are expected to be included.”