IBK Investment Securities raised its target price for Samsung C&T (ticker: 028260) on the 17th from 350,000 won to 620,000 won, a substantial upward revision, while maintaining its "Buy" investment recommendation.

Based on the closing price of 497,000 won (as of the 16th), the implied upside is 24.7%. The company's market capitalisation stands at approximately 80.97 trillion won.

Key Investment Thesis: Asset Revaluation and Shareholder Returns

IBK Investment Securities identified two core investment drivers for Samsung C&T: a revaluation of its equity holdings in affiliate companies, and an expansion of shareholder returns.

Samsung C&T holds stakes in major Samsung Group subsidiaries — including Samsung Electronics, Samsung Life Insurance, and Samsung Biologics — which together account for more than 90% of the company's net asset value (NAV).

Equity Portfolio Valuation

The total value of Samsung C&T's investment assets has been calculated at 15.35 trillion won, broken down as follows:

Holding | Stake | Valuation

Samsung Electronics | 5.0% | 10.05 trillion won

Samsung Biologics | 43.1% | 2.66 trillion won

Samsung Life Insurance | 19.3% | 1.67 trillion won

Applying a 40% discount to NAV, IBK derives a fair value of 619,156 won per share.

Shareholder Return Policy

Samsung C&T's shareholder-return framework also merits attention. Under its 2026–2028 policy, the company has committed to returning 60–70% of dividend income received from affiliates to shareholders, and has raised its minimum dividend per share (DPS) to 2,500 won.

Samsung Electronics' Free Cash Flow as a Catalyst

IBK Investment Securities estimates that Samsung Electronics' free cash flow (FCF) grew to 21.6 trillion won in 2024 and 37.8 trillion won in 2025, and projects it will expand to more than 150 trillion won in 2026. Rising FCF at Samsung Electronics is seen as a direct catalyst for higher dividend income at Samsung C&T.

Earnings Outlook

For the 2026 financial year, Samsung C&T is forecast to report:

- Revenue of 44.80 trillion won, up 10.0% year on year - Operating profit of 3.63 trillion won, up 10.3% year on year - Earnings per share (EPS) of 17,960 won, up 26.8% year on year