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  "documentTitle": "Samsung C&T Corporation (028260 KS)",
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  "presentationDate": "2023-12-06 00:00:00",
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  "notes": "Uses a matrix-like structure to define the diagnostic process for capital allocation.",
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      "text": "Leisure, Fashion and F&B (Welstory) businesses appear non-core and could raise KRW 3-4tr, if sold, or spun-off and listed, to redeploy for growth asset investing and/or shareholder returns whilst improving long term RoE",
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      "text": "SCT is in a strong capital position with ample liquidity: i) Net cash; ii) Investment grade credit rating (A-/A2); iii) Available credit lines; iv) Portfolio of highly liquid assets. SCT has sufficient capacity to raise low-cost debt of KRW 2-3tr.",
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      "text": "SCT has sufficient capacity to raise low-cost debt of KRW 2-3tr to redeploy for growth asset investing and/or shareholder returns while lowering WACC and improving RoE",
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      "text": "Does the asset align with SCT and Samsung Group's strategic focus? Are there synergies? Does it produce an adequate return? What is the capital that can be unlocked?",
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      "text": "What is the weighted average cost of capital? What are the liquidity requirements of operating businesses? What debt level can the company sustain?",
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      "text": "ROE: KRW 3-4tr",
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      "text": "SCT should conduct a detailed analysis of its capital structure and asset portfolio to identify excess capital that could be better utilised to generate more attractive returns and improve long-term growth and RoE",
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      "kind": "source-note",
      "text": "Source: Company, Bloomberg, Analyst research. Note: (1) Estimated for Samsung C&T ex Samsung Biologics as of 2023 year-end",
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      "text": "Identify Excess Capital and Reallocate in Accordance with a New Capital Allocation Framework",
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