Shinhan Investment & Securities said on the 29th that while Samsung C&T's own momentum is in a lull, its share price is expected to continue tracking the value of its listed equity holdings. It maintained a Buy rating and raised the target price to 270,000 won, reflecting the increase in the value of its equity stakes. Samsung C&T's previous closing price was 207,000 won.
Recently, as Samsung Electronics and Samsung Biologics shares surged, Samsung C&T also succeeded in a share price re-rating.
However, Park Hyun-woo, an analyst at Shinhan Investment & Securities, said, "The net asset value (NAV) discount rate is still around 60% and has not narrowed."
It explained that the share price could rise if visible results emerge from new investment businesses such as bio, Small Modular Reactor (SMR), and solar power, or if a forward-looking next shareholder return plan is announced.
Meanwhile, Samsung C&T posted third-quarter revenue of 10.1 trillion won and operating profit of 993.4 billion won this year. Revenue met market expectations, and operating profit beat by 25.4%.
Park analyzed, "An improved bio performance driven by a favorable exchange-rate environment, full operation at Plant 4, and strong milestone receipts and sales for biosimilars played a decisive role."