[Edaily Reporter Park Soon-yeop] Analysts suggest that Samsung C&T could benefit from both a revaluation of its stakes in key Samsung Group affiliates and expectations of increased shareholder returns. The assessment is that not only is the value of its holdings in companies such as Samsung Electronics and Samsung Life Insurance rising, but increased dividend income from affiliated companies could also lead to greater dividend capacity for Samsung C&T.
Cho Jung-hyun, an analyst at IBK Investment & Securities, maintained a “Buy” rating on #Samsung C&T on the 17th and raised the target price from 350,000 won to 620,000 won. Based on the previous day’s closing price of 497,000 won, this represents an upside potential of 24.7%.

Analyst Cho viewed the key investment points for Samsung C&T as stemming from the revaluation of its equity holdings and the potential for expanded shareholder returns. Samsung C&T holds stakes in core Samsung Group affiliates such as #Samsung Electronics, #Samsung Life Insurance, and #Samsung Biologics. According to IBK Investment & Securities, the value of these holdings accounts for more than 90% of Samsung C&T’s net asset value (NAV). He explained that as the value of these holdings has increased due to recent rises in the stock prices of key affiliates, the potential for a NAV revaluation has also grown.
However, Analyst Cho pointed out that what is more important in the current situation is not simply the rise in the value of these holdings, but the cash flow generated from them. Through its 2026–2028 shareholder return policy, Samsung C&T plans to return 60–70% of dividend income from affiliated companies to shareholders and has raised the minimum dividend per share (DPS) to 2,500 won. Consequently, increased dividends from Samsung Electronics and Samsung Life Insurance will lead to higher dividend income for Samsung C&T, which in turn could expand the company’s resources for shareholder returns.
The key variable is Samsung Electronics. Under its 2024–2026 shareholder return policy, Samsung Electronics has proposed returning 50% of its cumulative free cash flow (FCF) over the three-year period and paying an annual regular dividend of 9.8 trillion won. IBK Investment & Securities estimates that Samsung Electronics’ FCF, which is projected to rise to 21.6 trillion won in 2024 and 37.8 trillion won in 2025, could expand to over 150 trillion won by 2026.
Analyst Cho assessed that while Samsung Electronics will face the burden of increased capital expenditures (CAPEX) in 2026, the improvement in profits driven by the artificial intelligence (AI) semiconductor cycle and rising memory prices is likely to more than offset this. He noted that expectations for additional shareholder returns from Samsung Electronics could lead to increased dividend income from Samsung C&T’s affiliates and a narrowing of its NAV discount.
The potential for a recovery in its core businesses was also highlighted as an investment point. Samsung C&T operates in the construction, trading, fashion, leisure, food and beverage, and biotech sectors. IBK Investment & Securities projected Samsung C&T’s revenue for this year to reach 44.798 trillion won, a 10.0% increase year-over-year, and operating profit to rise 10.4% to 3.634 trillion won. Operating profit for next year is expected to rise by 19.3% to 4.334 trillion won. In particular, the analysis suggests that the high-tech investment cycle could support a recovery in the construction sector.
The target price calculation incorporated both operating value and the value of investment assets. IBK Investment & Securities valued Samsung C&T’s operating value at 11.745 trillion won and its investment assets at 153.515 trillion won. Within the investment asset value, the value of its stake in Samsung Electronics was assessed at 100.464 trillion won, its stake in Samsung Biologics at 26.571 trillion won, and its stake in Samsung Life Insurance at 16.671 trillion won. Based on these figures, the net asset value (NAV) per share was calculated at 1,031,926 won, and a target price of 620,000 won was proposed after applying a 40% discount rate.
Analyst Cho explained, “The key investment points for Samsung C&T are that a revaluation of the value of its equity holdings, an expansion of shareholder returns driven by increased dividend income from affiliates, and a recovery in its core business driven by the high-tech investment cycle could all occur simultaneously.” He added, “This is a phase where the value of equity holdings is driving up NAV, dividend income is being channeled into shareholder returns, and the core business is recovering through the high-tech investment cycle.”