[Click eStock] "Samsung Electronics, Current Price Adjustment is a Mid- to Long-Term Buying Opportunity"

[Asia Economy Reporter Song Hwajeong] SK Securities maintained its 'Buy' rating and target price of 108,000 KRW on Samsung Electronics on the 23rd, viewing the current stock price adjustment as a mid- to long-term buying opportunity.

Kim Young-woo, a researcher at SK Securities, said, "Although the relaying is inevitably delayed due to the suspension of operations at the Austin fab that occurred last February, considering the rise in memory semiconductor prices, normalization of the Austin fab, and active support measures by the U.S. government, the current stock price adjustment is a mid- to long-term buying opportunity."

First-quarter earnings this year are expected to exceed market expectations (consensus). SK Securities forecast Samsung Electronics' first-quarter earnings to surpass consensus with sales of 57.3 trillion KRW and operating profit of 8.76 trillion KRW. This represents increases of 3.5% and 35.8%, respectively, compared to the same period last year. Researcher Kim explained, "Favorable KRW-USD exchange rates in the first quarter and strong performance in the Mobile (IM) and Consumer Electronics (CE) sectors will result in good set division earnings," adding, "LSI and foundry may temporarily turn to losses in the short term." He added, "Although LSI and foundry earnings may temporarily be weak due to losses from the suspension of the Austin fab, with active support to strengthen U.S. semiconductor manufacturing competitiveness, they are expected to be among the biggest beneficiaries along with TSMC."

The memory semiconductor market is rapidly recovering. DRAM prices began to rise from the first quarter of this year, and NAND prices are expected to turn around starting in the second quarter. Researcher Kim said, "The market is rapidly recovering due to increased mobile DRAM and NAND orders from Chinese companies such as Oppo and Vivo, aiming to fill Huawei's void, and panic demand caused by concerns over semiconductor supply shortages," adding, "Major companies' capital expenditures are expected to maintain a conservative stance this year."

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