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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Sangjin] KB Securities anticipates that Samsung C&T may increase its dividend payout ratio and has set a target price of ₩200,000 for the stock, maintaining a "Buy" rating. As of September 2, Samsung C&T's closing price was ₩146,000.
KB Securities noted that Samsung C&T plans to repurchase and retire all of its treasury shares by 2026, starting from April this year. The company’s dividend payout ratio for 2022 and 2023 was around 18%. KB Securities’ analyst suggested that the company’s proactive shareholder return policy, including the reduction in the share repurchase period, makes an increase in the dividend payout ratio a reasonable expectation.
The construction division is a key driver of Samsung C&T's overall profit structure. The operating profit of the construction division, which exceeded ₩1 trillion last year, is projected to reach ₩1.1 trillion this year and ₩1.15 trillion next year.
KB Securities highlighted that while many domestic construction firms struggle with cost issues, Samsung C&T stands in contrast due to its high price pass-through capability in the housing market centered around Seoul and its stable operations in the high-tech sector. The company is expected to maintain annual operating profits of over ₩1 trillion.
The contribution of non-construction sectors to profitability is also expected to continue increasing. KB Securities pointed out that the operating profit contribution from non-construction sectors, which was only 30% in 2018, has risen to the mid-60% range since 2022 due to steady profit stabilization across various sectors, including bio. The forecast suggests that this contribution will exceed 70% from 2027 onwards.
KB Securities also noted Samsung C&T's active pursuit of new business opportunities across construction, trading, and bio sectors. The firm’s expertise in renewable energy, with its combined capabilities in construction and trading, is seen as a distinct competitive advantage.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
