iM Securities analyzed on the 17th that the expansion of Samsung C&T's small modular reactor (SMR) business has become visible and that benefits are expected due to improvements in the governance structure of Samsung Electronics. The target price is set at 188,000 won, and the investment opinion remains "buy."
Lee Sang-heon, a research institute at iM Securities, noted, "Samsung C&T signed a business agreement on the 11th with Korea Hydro & Nuclear Power to establish a strategic partnership for overseas nuclear power project development," and "therefore, the export activation of large nuclear power plants and SMR projects will likely become visible."
iM Securities expects the SMR business of Samsung C&T to expand in European markets such as Romania and Sweden. The research institute explained, "Samsung C&T agreed to jointly proceed with the basic design of the Romania SMR project with global engineering corporations last July," and "in December, it signed a memorandum of understanding for cooperation in the development of the Swedish SMR project with the Swedish private SMR developer, Kanpūl Next."
Additionally, the 10 trillion won share buyback plan of Samsung Electronics is analyzed to also benefit Samsung C&T. The research institute stated, "The share buyback plan is Samsung Electronics signaling to the stock market that it will improve its governance structure in the future," adding, "once the improvement begins, benefits are expected for Samsung C&T as well."