Samsung C&T Corporation’s Q3 operating profit beats expectations by 18%; target price: 510,000 won

[Financial News] Yuanta Securities maintained its “Buy” rating and target price of 510,000 won for Samsung C&T Corporation, saying the company is sustaining an earnings recovery led by its high-tech business while also securing growth opportunities in data centers and small modular reactor (SMR) projects.
In a report on the 29th, Yuanta Securities analyst Kim Do-yeop said, “The improvement in construction earnings is already becoming visible, and there is ample room for further gains if overseas data-center and nuclear-power projects take shape.” The firm also maintained its second-most-preferred stock pick in the construction sector.
Samsung C&T Corporation posted consolidated revenue of 12.008 trillion won in the third quarter of this year, up 18.3% from a year earlier, and operating profit of 1.1428 trillion won, up 15.0%. Operating profit exceeded Yuanta Securities’ estimate and the market consensus by 17.6% and 18.3%, respectively.
Operating profit in the construction division rose 149.5% to 277 billion won. Improved profitability in high-tech processes and an expansion of new overseas projects lifted the operating margin by 1.1 percentage points from the previous quarter to 6.2%. Operating profit in the trading division also rose 30.3% to 99 billion won, beating securities firms’ forecasts.
Order momentum was also solid. New orders in the third quarter totaled 8.827 trillion won, including 2.8 trillion won for Phase 2 of a semiconductor plant in Taylor, Texas, United States, and 2.1 trillion won for the redevelopment of Eunma Town Apartments in Daechi. Cumulative orders stood at 19.275 trillion won.
Cumulative orders in the high-tech division reached 11.2 trillion won, exceeding the annual target of 6.8 trillion won by 4.4 trillion won. “High-tech orders came in faster than expected, and we were able to raise our order target by replacing projects delayed by the situation in the Middle East with overseas combined-cycle power projects,” Kim said.
In the fourth quarter, additional orders of around 10.8 trillion won are expected, including at least 4 trillion won in plant projects, around 3 trillion won in housing, and at least 1 trillion won in building projects.
Nuclear-power and data-center projects were also cited as medium- to long-term growth drivers. Last September, Samsung C&T Corporation was selected, alongside GE Vernova and Hitachi, as a partner for a 1.2-GW SMR project in Sweden. The project is expected to begin basic design in 2027, reach an engineering, procurement and construction (EPC) contract in 2029, and start construction in 2030.
Samsung C&T Corporation invested $70 million in U.S. SMR developer Kairos Power, securing preferred negotiating rights for a commercial SMR project. It also invested $200 million in AI infrastructure company Helix and aims to participate in building data centers in Texas, United States, starting in 2028.
Kim forecast, “If overseas data-center and nuclear-power projects join the earnings recovery led by high-tech, Samsung C&T Corporation’s growth drivers will be further strengthened.”

[email protected] Lee Jeong-hwa Reporter