Hanwha Investment & Securities maintained a Buy rating on Samsung C&T, saying nuclear power momentum is steadily becoming visible. It also raised the target price to 410,000 won from 390,000 won. Based on the previous trading day, Samsung C&T closed at 331,000 won.
Samsung C&T posted revenue of 40.742 trillion won and operating profit of 3.293 trillion won last year. That was down 3.2% and up 10.4%, respectively, from a year earlier.
Song Yu-rim, an analyst at Hanwha Investment & Securities, said, "With Team Korea likely to take part in EPC (engineering, procurement and construction), participation in large nuclear plants and Small Modular Reactor (SMR) projects is becoming visible through partnerships with global players," and "results are also expected to show a clear upward trend."
Song explained, "The Romanian SMR, in cooperation with NuScale Power, received approval for a final investment decision (FID) recently after completing the front-end engineering design (FEED) in Nov. last year, and the Swedish SMR, in cooperation with GVH, is scheduled to select an operator within this year."
She added, "For units 3 and 4 of the large Romanian nuclear power plant, with Fluor confirmed as the EPCM (engineering, procurement and construction management) contractor, there is an opening for construction participation through cooperation with them."