(Photo= Yonhap news)

 

[Alpha Biz= Reporter Kim Sangjin] On August 13, IBK Investment Securities expressed optimism regarding Samsung C&T’s future, citing its stable business portfolio and dividend income as strong foundations for a more aggressive shareholder return policy.

The firm anticipates that Samsung C&T’s robust cash generation, driven by its reliable profit streams, will support an enhanced shareholder return strategy. Additionally, IBK Investment noted that new policy announcements linked to the government’s value-up program and the planned cancellation of approximately 15.61 million common shares could significantly improve the company’s Return on Equity (ROE).

Samsung C&T recently reported that its Q2 earnings for the fiscal year showed a 4% increase in revenue to KRW 11.048 trillion and a 16.6% increase in operating profit to KRW 904 billion, surpassing market expectations by 9%.

IBK Investment highlighted the consistent profitability across all business units and significant growth in the bio sector as key drivers of this performance. The bio division saw a 72.9% increase in operating profit, fueled by the operational effects of its fourth plant and milestone payments from Samsung Bioepis.

IBK Investment Securities maintained its target price of KRW 180,000 and a ‘Buy’ rating on Samsung C&T, reflecting the firm’s confidence in the company’s continued profitability and growth prospects.

 

 

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