April 25, 2024

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[THE INVESTOR] Samsung C&T’s operating profit in the first quarter was higher than expected, said Hana Financial Investment on March 30, raising the target price to 210,000 won (US$ 197.09) from 190,000 won.

Its operating profit rose 35 percent on-year to 178.9 billion won, 15.6 percent higher than market consensus, propelled by high-margin high-tech projects in the construction sector, said analyst O Jin-won.

Profit from the trade division is showing signs of recovery, noted the analyst, adding that non-operating income from dividends of Samsung Electronics, Samsung Life and Samsung SDS will top 230 billion won.

After the IPO of Samsung BioLogics, Samsung C&T’s stake in listed affiliates has doubled in value but its total market value fell 8.7 percent. There is no reason for its stocks to be discounted considering the increased cash inflow and improved financial health, said O.

The target price has been raised factoring in the rise of asset value including its stake in Samsung BioLogics, decline in borrowings and higher earnings estimates, explained the analyst maintaining a “buy” recommendation. 

By Hwang You-mee (glamazon@heraldcorp.com)