[Click eStock] "Samsung Electronics' Share Price Has Dropped" Strong Results But... Samsung C&T Target Price Lowered

On July 30, SK Securities revised its target price for Samsung C&T, lowering it from 5.9 million won to 4.5 million won. This move reflects the recent sharp decline in Samsung Electronics' share price, despite Samsung C&T’s strong second-quarter results. However, SK Securities predicted that Samsung C&T’s share price could gradually rise in the second half of the year, citing anticipated earnings improvement and the prospect of more visible shareholder returns.

On this day, Kwansoon Choi, a research analyst at SK Securities, stated this in a report on Samsung C&T titled “Results Too Good To Overlook.” Choi explained, "In 2026, Samsung Electronics' share price fell 42.5% from its peak, which led to a 30.8% decline in Samsung C&T's net asset value (NAV) from its peak," adding, "Reflecting the decrease in NAV, we are lowering the target price for Samsung C&T to 4.5 million won."

However, he also pointed out that the recent decline in Samsung C&T’s share price is excessive compared to the fall in NAV. The previous day's closing price for Samsung C&T was 285,500 won. Choi said, "The current discount rate to NAV is 61.7%," and further explained, "Given the expected benefit from Samsung Electronics’ expanded CAPEX and the high likelihood of a dividend increase due to its strong results, there is also a high probability that Samsung C&T will expand shareholder returns. Considering these factors, the current share price of Samsung C&T, which only reflects Samsung Electronics’ share price, seems rather unfair."

In the second quarter, Samsung C&T’s revenue climbed 19.7% year-on-year to 12 trillion won. Operating profit also surged 37.1% to 1.0317 trillion won. This was 19% above consensus, marking very strong results. Choi noted, "The company recorded a surprise result thanks to strong performance in construction and trading," adding, "The current share price does not yet reflect the improvement in results or the expansion of shareholder returns."

He went on to forecast annual results, projecting revenue at 45.7 trillion won and operating profit at 3.8141 trillion won, saying “Both topline growth and profitability are expected to improve.” These projections represent increases of 12.1% and 15.8% year-on-year, respectively. He added, "Gradual share price appreciation is expected in the second half of the year, driven by improved results and enhanced shareholder returns."

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