Heungkuk Securities evaluated on the 27th that Samsung C&T is expected to transform into a growth value stock through new growth engines in hydrogen, small modular reactors (SMR), and biotech. Consequently, it maintained a 'buy' investment opinion and raised the target price from 160,000 won to 200,000 won. The closing price of Samsung C&T on the previous trading day was 152,100 won.
Park Jong-ryeol, a researcher at Heungkuk Securities, noted, "Samsung C&T's new business strategy is to establish a sustainable business portfolio by reinvesting in future growth drivers based on a stable revenue foundation," and explained, "The company is securing profitability through the advancement of technology, products, and services in its existing core businesses and is expanding investments in growth drivers in the eco-friendly and biotech sectors."
Samsung C&T is reportedly participating in green hydrogen production projects in the Middle East and Australia, as well as domestic nuclear clean hydrogen production projects in the hydrogen institutional sector. In the SMR institutional sector, it is planning to engage in projects such as the Romanian SMR pilot project to take the lead in the global SMR market. In the biotech institutional sector, it plans to continuously explore areas of clinical research organization (CRO) support for pharmaceuticals and push for investments.
According to Park's analysis, the recent sharp rise in Samsung C&T's stock price is attributed to the benefits of capital market activation. He said, "Recent factors contributing to the sharp rise in stock price include the spin-off of Samsung Biologics, entry into the space rear industry, growth expectations in the SMR field, and the potential for expanded shareholder returns and stock price reevaluation due to upcoming amendments to the Commercial Act."
However, significant performance improvement is expected to be possible starting next year. Researcher Park projected, "The institutional sector that played a dual role in driving performance this year, the construction institutional sector, is expected to be somewhat sluggish, and thus performance is likely to be less favorable. However, through robust domestic and foreign order performances and securing housing contracts, gradual performance improvement is anticipated starting next year."