iM Securities said on the 3rd that Samsung C&T's value growth will accelerate on the back of nuclear power, biotech, and a governance overhaul. The firm raised its target price to 285,000 won from 188,000 won and maintained its buy rating.
Samsung C&T signed a memorandum of understanding (MOU) with Korea Hydro & Nuclear Power Co. (KHNP) in Mar. for overseas nuclear power project development, and in Aug. it signed an MOU with Fermi America and KHNP to join nuclear power projects in the United States. After obtaining certifications from the American Society of Mechanical Engineers (ASME) for nuclear equipment installation and component installation, it also won certification for nuclear piping system design in Sep. This effectively enables its participation in EPC related to small modular reactors (SMRs) going forward.
The spin-off of Samsung Biologics, a key subsidiary of Samsung C&T, is proceeding smoothly. On the 24th, Samsung Biologics' relisting with its changed status is slated, along with the relisting of Samsung Bioepis Holdings, a holding company for the biotech affiliates.
Lee Sang-heon, an analyst at iM Securities, said, "Earnings at Samsung Bioepis, the core subsidiary of Samsung Bioepis Holdings, have been trending upward every year," and noted, "It is speeding up ADC new drug development, and with plans to enter new modalities such as AAV Gene Therapy and peptides, new drug development is expected to accelerate."
In addition, with the Samsung Group's governance expected to stabilize, a reassessment of valuation could be on the table. Samsung Electronics Chairman Lee Jae-yong shed legal risk in Jul., making it likely he could return as a registered director at Samsung Electronics' regular shareholders meeting in Mar. next year.
The analyst said, "Not only at Samsung Electronics but across the Samsung Group, growth foundations will be laid through governance innovation."