Samsung Electronics: Will It Surpass '70,000 Won' This Week? Market Focus Intensifies

On the 27th, Samsung Electronics closed at 68,200 KRW, marking the highest closing price ever recorded.

Samsung Electronics Building, Seocho-gu, Seoul. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Geum Boryeong] Market attention is focused on whether Samsung Electronics' stock price can surpass "70,000 won" this week.

According to the Korea Exchange on the 30th, Samsung Electronics closed at 68,200 won on the 27th, marking an all-time high closing price. This set a new record for two consecutive days following the 26th.

The expectation that the stock price can break through 70,000 won is partly due to the significant rise Samsung Electronics' stock has shown this month. Considering the closing price was 56,600 won on the 30th of last month, it has increased by 20.49% in one month.

Foreign and individual investors have bet on the rise of Samsung Electronics' stock price. In particular, foreigners have net purchased Samsung Electronics shares worth 2.2874 trillion won just this month. Even in the past week alone, from the 23rd to the 27th, they bought shares worth 242.1 billion won. During the same period, individuals also net purchased shares worth 186 billion won.

The purpose of the scheduled "Samsung Electronics Investor Forum 2020" on this day is to enhance investors' understanding of Samsung Electronics' technology. It plans to explain areas of high investor interest such as memory, foundry, System LSI, and mobile. Since the forum will be conducted in English, it is highly likely to promote investment attractiveness to foreign investors.

Kim Kyungmin, a researcher at Hana Financial Investment, analyzed, "Investor interest is expected to focus on foundry and System LSI at the forum. The anticipated points in the foundry business division presentation are production capacity and sales growth strategies, and in the System LSI session, analog semiconductors will attract attention."

There is also a view that the rise in Samsung Electronics' stock price is too rapid and more time is needed to reach 70,000 won. Concerns about valuation burdens have been raised. Lee Soonhak, a researcher at Hanwha Investment & Securities, explained, "I compared the stock price and DRAM fixed prices over the past five years. During the sharp rise in fixed prices from 2017 to 2018, the decline in DRAM prices began in November 2018, but Samsung Electronics' stock price peak was in November 2017, leading the decline by as much as 12 months. Currently, since DRAM prices are expected to start rising from April next year, the stock price is reflecting this with a five-month lead time, so compared to the previous cycle, the stock price is not rising that quickly."

Next year, demand for Samsung Electronics' mobile, PC, and server products is expected to increase. Accordingly, Samsung Electronics is expected to expand its market share in various businesses such as DRAM, NAND, and displays. Eugene Investment & Securities estimated Samsung Electronics' sales next year at 253.2 trillion won and operating profit at 42.5 trillion won, representing increases of 6% and 14% respectively compared to the previous year.

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