[Click e-Stock] "Samsung C&T Set to Benefit from Samsung Electronics Upside... Target Price Raised"

Mirae Asset Securities Sets Target Price for Samsung C&T at 680,000 Won

On June 24, Mirae Asset Securities significantly raised its target price for Samsung C&T from 3.7 million won to 6.8 million won, citing the increasing value of its stake in Samsung Electronics. The firm also reiterated its "Buy" investment opinion.

Kim Giryong, an analyst at Mirae Asset Securities, stated, "The stock price of Samsung C&T continues to rise on the back of soaring Samsung Electronics shares, which have boosted equity value, as well as growing expectations for increased shareholder returns." He added, "The indirect benefits of Samsung Electronics through Samsung Life Insurance, which is held by Samsung C&T, are also significant." Kim further explained, "Assuming a 0% discount rate, the value of Samsung C&T's stake in Samsung Electronics has increased by approximately 68 trillion won compared to the end of 2025."

There is also potential for enhanced shareholder returns. In February of this year, Samsung C&T announced its shareholder return policy for the next three years, including: ▲raising the minimum dividend per share (from 2,000 won to 2,500 won) and ▲maintaining the return of 60-70% of dividend income from affiliates. Kim noted, "The recent anticipation for stronger shareholder returns stems from the possibility that Samsung Electronics' special dividend payments could lead to a higher cash dividend at Samsung C&T."

Earnings contributions from the construction division are also expected to increase, particularly driven by high-tech and nuclear power projects. The high-tech segment is expected to benefit from Samsung Electronics' expanded capital expenditures (CAPEX), including orders for P4-P6 plants in Pyeongtaek and a potential start of construction for its second plant in Taylor, Texas. Mirae Asset Securities forecasts that high-tech orders this year will far exceed the market expectation of 6.8 trillion won.

In the overseas nuclear power sector, Samsung C&T is pursuing large-scale nuclear power projects in countries such as Vietnam through Team Korea, which helps disperse risks. The company is also working to enter the European market for small modular reactors (SMRs) through partnerships with entities such as GE Vernova-Hitachi (GVH). The Doicesti SMR project in Romania, which is being developed in collaboration with NuScale, aims to sign a final contract in the first half of next year.

Kim concluded, "Investment drivers such as the rising value of shares in listed subsidiaries like Samsung Electronics, expectations for stronger shareholder returns, and earnings improvements based on a diversified portfolio are likely to be sustained."

This content was produced with the assistance of AI translation services.