[Featured Stock] Can Samsung Electronics Become a '60,000-Won Stock'?...Rises Over 1%

[Asia Economy Reporter Minji Lee] There is growing interest in whether Samsung Electronics, the KOSPI leader, can settle in the 60,000 KRW range.

At 9:45 a.m. on the 9th, Samsung Electronics was trading at 60,700 KRW, up 1% from the previous trading day on the KOSPI market. On the same day, Samsung Electronics rose to 60,800 KRW. Since the beginning of this month, Samsung Electronics has increased by about 7%, rising from 56,600 KRW to 60,700 KRW. During this period, foreigners and institutions purchased 4.7 million shares and 4.99 million shares respectively, while individuals sold about 9.05 million shares.

[Image source=Yonhap News]

In the securities industry, it is recommended to increase the weighting of Samsung Electronics. Although a decline in earnings is expected in all business divisions except the display division in the fourth quarter, it is judged that the semiconductor sector may show earnings improvement starting next year.

Dongwon Kim, a researcher at KB Securities, said, “With the surge in mobile semiconductor demand, replacement demand for server semiconductors is arriving for the first time in four years since 2017, and earnings improvement is expected due to rising prices of DRAM and NAND,” adding, “Considering the expected earnings improvement in the display and set business (IM, home appliances) divisions, the mid- to long-term investment appeal is increasing despite the weak fourth-quarter earnings.”

It is also positive that the Biden administration is unlikely to ease pressure on China. As the domestic semiconductor and smartphone sectors have benefited from sanctions against Chinese semiconductors and Huawei, continued sanctions are expected to have a positive effect on domestic semiconductors.

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