SK Securities said on the 4th that it is worth noting that while the value of the equity stakes in major subsidiaries held by Samsung C&T has risen, the performance of its own businesses is also improving. It maintained its "Buy" investment opinion and raised the target price to 590,000 won from the previous 480,000 won. Samsung C&T's previous closing price was 485,500 won.
The value of the equity currently held by Samsung C&T is 165 trillion won, consisting of Samsung Electronics 64.5%, Samsung Biologics 16.5%, and Samsung Life Insurance 11.3%.
Samsung C&T's net asset value (NAV) increased by 7.54 trillion won from the end of last year. This was driven by the surges of 196.9% and 204.6% in the share prices of Samsung Electronics and Samsung Life Insurance, respectively, and by a 972.7 billion won decrease in standalone net debt as of the first quarter this year compared with the end of 2025.
Choi Gwan-soon, an analyst at SK Securities, said, "Considering growth in the high-tech segment this year and the medium- to long-term potential in energy and small modular reactors (SMR), the potential for improvement in internal cash flow is also high," adding, "Amid rising equity values, it is necessary to pay attention to improvements in the performance of the company's own businesses."
There is also speculation that shareholder returns could expand. In Feb., Samsung C&T raised the minimum dividend per share to 2,500 won from this year through 2028 and announced a shareholder return policy to re-distribute 60%–70% of dividend income from affiliates.
Samsung C&T's dividend income from affiliates consists of dividends from Samsung Electronics, Samsung Life Insurance, Samsung SDS, and Samsung E&A, and it is estimated that about 90% comes from Samsung Electronics and Samsung Life Insurance.
Choi said, "The dividend for the 2026 fiscal year to be paid by Samsung C&T in early 2027 is calculated based on the dividends received early this year," adding, "As Samsung Electronics' and Samsung Life Insurance's dividend per share (DPS) last year increased by 15.4% and 17.8%, respectively, dividend income from affiliates is estimated to have increased by about 100 billion won."
Accordingly, Samsung C&T's DPS this year was projected at 3,500 won, up 25% from the previous year.
In particular, this year Samsung Electronics plans to make additional returns if residual resources remain after shareholder returns for 2024–2025 and regular dividends of 9.8 trillion won this year from 50% of total free cash flow (FCF) for 2024 through this year.
Choi said, "Based on the consensus (market forecast average), Samsung Electronics' FCF this year is 220.9 trillion won, so expectations for expanded dividends at Samsung Electronics are valid," adding, "Accordingly, dividends for Samsung C&T's 2027 fiscal year are also expected to increase proportionally."