DS Investment & Securities said on the 19th that Samsung C&T has strong dividend appeal based on dividend funds flowing in from Samsung Electronics and Samsung Life Insurance. It maintained a "buy (BUY)" rating and raised the target price to 620,000 won from 380,000 won. The previous session's closing price was 485,500 won.
Kim Su-hyun, an analyst at DS Investment & Securities, said, "Samsung C&T plans to re-distribute 60% to 70% of the dividend revenue it receives from affiliates, including Samsung Electronics and Samsung Life Insurance, in 2026–2028," and "It will guarantee a minimum dividend per share (DPS) of 2,500 won and maintain a policy of returning up to 70% of the funds from Samsung Electronics' special dividends to shareholders when they occur."
Kim said that as the memory semiconductor supercycle begins, the likelihood of large special dividends from Samsung Electronics is increasing, and Samsung C&T is also expected to benefit from expanded dividends as a result. "Based on shareholder-return funds from Samsung Electronics and Samsung Life Insurance, Samsung C&T's 2026 DPS is estimated at 23,050 won, up about 720% from a year earlier," Kim said. "The dividend yield is expected to be around 4.8%." He added, "The 2027 DPS will be 41,030 won, with a dividend yield reaching 8.6%."
Samsung C&T's corporate value is undervalued compared with similar holding companies, the analysis said. Kim said, "Even compared with SK Square, which has subsidiaries benefiting from the memory supercycle, Samsung C&T's net asset value (NAV) discount is higher," adding, "SK Square is expected to secure up to 40 trillion won in dividend funds over the next three years, but Samsung C&T has the edge in the predictability of its dividend policy."
He also cited expected improvement in the construction division's results. "As the finishing work on Pyeongtaek P4 and the frame work on P5 ramp up from the second quarter, orders in the high-tech division this year are likely to exceed the existing guidance of 6.8 trillion won," he said. "Related revenue is expected to be reflected in earnest from the second to third quarters."
He added, "Follow-on order momentum such as the Pyeongtaek P4 and P5 projects driven by the memory supercycle, the Giheung research and development (R&D) facility, and the back-end plant in Vietnam is also coming into view," and predicted, "In a second-half market that is in a phase of seeking alpha, Samsung C&T, with a clear dividend policy, will emerge as an attractive investment alternative."