Samsung C&T is surging in early trading on the 25th as the value of its Samsung Electronics equity draws attention.
As of 9:45 a.m. that day, Samsung C&T was trading on the KOSPI at 539,000 won, up 57,500 won (11.94%) from the previous session.
Brokerages say Samsung C&T's net worth (NAV) will jump on the back of a rise in the value of Samsung Electronics equity. Samsung C&T holds a 5.05% stake (29,888,100 shares) in Samsung Electronics.
In particular, compared with SK Square, whose share price soared 920% over a year as it was valued as the holding company of SK hynix, Samsung C&T's share price is seen as undervalued.
Kim Su-hyeon, an analyst at DS Investment & Securities, said, "Compared with SK Square, which benefits from the same memory supercycle, Samsung C&T has a higher NAV discount and SK Square's market capitalization is about 2.6 times larger," adding, "Samsung C&T has high predictability in its dividends policy and also holds intrinsic business value in construction and Small Modular Reactor (SMR), so the market cap gap is excessive." Kim set a target price of 6.2 million won.
There are also expectations for shareholder returns. In Feb., Samsung C&T raised its minimum per-share dividends to 2,500 won from 2,000 won and announced a shareholder-return policy to return 60%–70% of dividend income from affiliates to shareholders.