Samsung C&T hit a 1-year high early on the 23rd as the value of its subsidiaries' equity drew attention.
As of 9:12 a.m. that day on the Korea Exchange, Samsung C&T was trading at 548,000 won, up 28,000 won (5.38%) from the previous session. It traded as high as 566,000 won early in the session, rewriting its 1-year high.
Brokerages said Samsung C&T, like SK Square, is benefiting from a rise in the value of affiliates' equity as the semiconductor cycle improves. Samsung C&T holds core Samsung affiliates including Samsung Electronics (5.05%) and Samsung Life Insurance (19.34%).
The market cap gap with SK Square, which has surged as the equity value of SK hynix has been re-rated, is also large. As of the previous day, the market caps of SK hynix and Samsung Electronics differ by about 8%, but those of Samsung C&T and SK Square differ by roughly threefold.
Considering Samsung C&T's own businesses—construction, trading, fashion and resorts—some say it remains undervalued. Park Jong-ryeol, a researcher at Heungkuk Metaltech Securities, said, "Construction will see operating profit growth gain traction as the (Pyeongtaek Campus) High-Tech Plant 4 (P4) is wrapped up and structural work at Plant 5 (P5) ramps up," adding, "The fashion and leisure divisions will also turn to a profit-increase trend on positive asset effects and improving consumer sentiment."