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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": "The slide uses a bar chart to compare annualised buyback returns over different time horizons against the company's cost of capital.",
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      "kind": "callout",
      "text": "Annualised return from buyback not including additional return on equity from acquired shares/assets over the period",
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      "kind": "callout",
      "text": "High ROI on buyback implies that there ought to be space in capital allocation for buybacks given the high return, and ultimately that is just acquiring great assets like SEC and Samsung Biologics for shareholders at a big discount",
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      "kind": "chart",
      "text": "Illustrative Hurdle Rate Based on Buyback ROI and Cost of Capital",
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      "text": "Buying back SCT shares at a 5% premium to current levels (i.e. a 61% discount to NAV) is equivalent to acquiring assets worth KRW 100 at KRW 39. At current discount levels, the hurdle rate for growth investments is very high. The return from buybacks can be annualised over a suitable period to compare with a growth investment opportunity that will provide returns over a longer time frame.",
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      "text": "Annualised return from buyback: 38%",
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      "kind": "paragraph",
      "text": "In addition to strategic considerations, growth asset investments should be benchmarked against the higher of: alternative uses of capital, including the return available from share buybacks, or the cost of capital",
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      "text": "High ROI on buyback implies that there ought to be space in capital allocation for buybacks given the high return, and ultimately that is just acquiring great assets like SEC and Samsung Biologics for shareholders at a big discount",
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      "kind": "source-note",
      "text": "Source: Company, Bloomberg; Market data as of 1 Dec 2023. Note: (1) Assuming buy back at 5% premium to current SCT spot share price; Buyback Cash per Share Spent on Buyback = KRW 500bn divided by post buyback number of shares; NAV per Share Accretion is driven by the reduction of number of shares offset by decrease of KRW 500bn asset value",
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      "text": "For Each KRW 500bn Spent on Buyback: @ an Average Buyback Discount of (61%); Cash per Share Spent on Buyback (KRW) (A) 3,132; NAV per Share Accretion (KRW) (B) 4,970; Return = (B) / (A) 159%",
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      "kind": "title",
      "text": "Allocate Capital With Reference to Investment Hurdle Rate",
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      "name": "Quick Win Big Bet",
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      "objective": "What are the quick wins and big bets for SCT?",
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