[90,000 Electronics] Samsung Electronics Hits 90,000 Won Intraday on Foreign Buying... Strong Performance Expected This Year

Breaking the Earnings Announcement Day Stock Price Drop Jinx with an Intraday 8% Surge
Growing Optimism for the Semiconductor Supercycle

[Asia Economy Reporters Juyoun Oh, Jihwan Park] Samsung Electronics traded at 90,000 KRW during the session on the 8th, marking an all-time high. Despite the COVID-19 pandemic, last year's overall performance was solid, and this year, expectations of a semiconductor boom have added weight to the possibility of further stock price increases.

At 2:34 PM on the same day, Samsung Electronics traded at 90,000 KRW, up 8.56% from the previous trading day, breaking the record for the highest price ever. By 3:26 PM, the price had partially retraced to 89,100 KRW, but the increase rate compared to the previous day still stood at 7.48%.

At this time, Samsung Electronics' market capitalization exceeded 531.9 trillion KRW. This is interpreted as being due to foreigners net buying more than 20 billion KRW worth of shares during the session.

The usual jinx of stock prices falling on earnings announcement days was also broken.

On this day, Samsung Electronics announced its Q4 2020 earnings. According to the preliminary consolidated results for last year, operating profit increased by 29.46% year-on-year to 35.95 trillion KRW. During the same period, sales totaled 236.26 trillion KRW, up 2.54% from the previous year. This is the third highest record ever, following 239.58 trillion KRW in 2017 and 243.77 trillion KRW in 2018.

Researcher Jaeyoon Lee of Yuanta Securities said, "Samsung Electronics appears to have recorded solid performance despite the impact of COVID-19 last year," adding, "The expansion of outsourced production for mid-to-low-end smartphones and efficient marketing expenditure helped defend profitability in the IT & Mobile (IM) division." He also analyzed that cost reductions in memory semiconductors, expansion of non-memory market share, and the record-high operating profit achievement of the Consumer Electronics (CE) division contributed significantly.

Samsung Electronics is expected to see a significant increase in performance this year due to factors such as the semiconductor supercycle (long-term boom). According to the securities information provider FnGuide, the consensus (average forecast by securities firms) for Samsung Electronics is sales of 257.9502 trillion KRW and operating profit of 46.7536 trillion KRW. This represents a 9.2% increase in sales and a 30% increase in operating profit compared to last year.

Researcher Yangjae Kim of KTB Investment & Securities forecasted, "A turnaround in the memory market is expected in the first quarter of this year," adding, "While inventory levels in the set and memory industries have already normalized, front-end demand is recovering, and considering that last year's capacity expansion was limited, memory supply and demand may be tighter than expected." He further added, "The memory market turnaround is expected to serve as momentum for a revaluation of industry valuations."

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