Samsung C&T shares jump nearly 6% on renewable energy outlook

Samsung C&T Corp. CI

Shares of Samsung C&T Corp. rose nearly 6 percent on Tuesday morning following a favorable analyst report highlighting the company’s strengths in its new renewable energy ventures.

As of 11 a.m., the stock was trading at 154,200 won ($115), up 5.62 percent from the previous session.

The surge in Samsung C&T’s stock is attributed to a positive report from a securities firm that outlined both its new and existing business segments, boosting investor confidence.

The company’s focus on hydrogen, solar energy, and small modular reactors (SMRs) gives it a competitive edge, according to Kang Min-chang, an analyst at KB Securities.

He emphasized that unlike traditional energy sectors, the development and financial capabilities are crucial in renewable energy, areas where Samsung C&T excels due to its construction and trading divisions.

Kang also highlighted the stable profit generation from Samsung C&T’s construction segment and increasing contribution from its non-construction businesses, suggesting potential for a higher dividend payout in the future.

He maintained a Buy rating on the stock with a target price of 200,000 won.

Meanwhile, Hyundai Rotem Co. shares also saw early gains on Tuesday, trading 0.96 percent at 52,700 won as of 11 a.m.

This follows a report from Hyundai Motor Securities Co. that named Hyundai Rotem as the top pick in the defense sector.

The stock had earlier climbed as much as 6.32 percent, nearing its 52-week high of 55,800 won reached on August 28.

Hyundai Motor Securities raised its target price for Hyundai Rotem by 14.3 percent to 64,000 won, citing strong growth prospects in both the defense and rail sectors.