[Click eStock] "Samsung Electronics, Q1 This Year Is Operating Profit Bottom"…Target Price Down

[Asia Economy Reporter Song Hwajeong] IBK Investment & Securities forecasted on the 7th that Samsung Electronics' operating profit will turn to an upward trend from the first quarter of this year as the bottom, and lowered the target stock price from the previous 67,000 KRW to 62,000 KRW. The investment opinion was maintained as 'Buy.'

Kim Unho, a researcher at IBK Investment & Securities, said, "The target stock price was lowered reflecting the downward revision of this year's earnings," adding, "The semiconductor industry improvement trend is expected to continue within the year, and although the mobile and display industries are expected to be sluggish, they will rapidly improve in the second half."

It is analyzed that semiconductors will be relatively less affected, but adjustments in bit growth (bit unit production increase rate) and average selling price (ASP) of DRAM and NAND are inevitable. Researcher Kim said, "Reflecting this, the operating profit of Samsung Electronics' semiconductor division this year was revised downward from 20.1 trillion KRW to 18.7 trillion KRW, and the operating profit of the display division was lowered from the previous 2.2 trillion KRW to 1.1 trillion KRW due to sluggish rigid industry conditions and LCD restructuring," adding, "Mobile was revised downward from 10.3 trillion KRW to 8.8 trillion KRW due to a decrease in shipment volume and a decline in the proportion of flagship models."

The stock price is expected to find its proper position going forward. Researcher Kim said, "Based on the current earnings forecast, the stock price will find its place," explaining, "Because the expected earnings are projected to increase from the first quarter as the bottom until the end of the year."

This content was produced with the assistance of AI translation services.