'Samsung C&T to Benefit from Up to 110 Trillion Won Samsung Electronics Shareholder Returns... Target Price Raised to 550,000 Won [Click e-Stock]'

On August 24, SK Securities raised its target price for Samsung C&T from 4.5 million won to 5.5 million won, citing increased visibility for shareholder returns. The investment recommendation remained at "Buy."

Choi Kwan-soon, an analyst at SK Securities, stated, "We are raising our target price for Samsung C&T in consideration of the recent rebound in Samsung Electronics' share price," and added, "As expectations for shareholder returns have shifted to strong conviction, the stock’s upward momentum is also expected to increase."

Previously, on August 21, Samsung Electronics announced its "expected shareholder return amount and implementation plan for 2026" through a public disclosure. The remaining resources for shareholder returns in 2026 amount to around 90 to 110 trillion won, and the company plans to execute a cash dividend of approximately 30 trillion won in Q3 this year. In addition, Samsung Electronics plans to purchase 15 trillion won (equivalent to 0.9% of shares) in treasury stock for employee compensation.

With the expansion of Samsung Electronics' dividend in the third quarter, Samsung C&T's dividend per share (DPS) is also expected to rise this year. Analyst Choi explained, "If Samsung Electronics pays a dividend of 30 trillion won in the third quarter, Samsung C&T’s 2026 dividend income from its Samsung Electronics holdings (from Q4 2025 to Q3 2026) will reach 1.7 trillion won." He added, "Including dividends from its other affiliates, total dividend income would be 2 trillion won. Assuming a 70% re-distribution ratio, Samsung C&T’s 2026 DPS would amount to 8,550 won (compared to the consensus of 4,477 won), resulting in a dividend yield of about 2.2% based on the current share price."

The shareholders of Samsung Electronics consist of Samsung Life Insurance (8.51%), Samsung C&T (5.11%), and Samsung Fire & Marine Insurance (1.49%). Samsung C&T, which plans to re-distribute 60% to 70% of dividend income from its affiliates through 2028, also holds a 19.34% stake in Samsung Life Insurance. Analyst Choi mentioned, "Samsung Life Insurance has set a mid- to long-term shareholder return target of 50%, though there has not been any specific reference to special dividends." He further explained, "If Samsung Life Insurance proceeds to re-distribute special dividends received from Samsung C&T, it would serve as an additional factor for increasing Samsung C&T’s dividend income from affiliates."

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