Samsung Electronics' Record-Breaking Q1 Performance... Will It Escape the 60,000 Won Mark?

[Image source=Yonhap News]

[Asia Economy Reporter Kwon Jaehee] Breaking the formula of 'Q1 = the off-season for the electronics industry,' Samsung Electronics recorded record-breaking earnings. However, its stock price has hit a 52-week low and remains stuck in the 60,000 KRW range.

On the 7th, Samsung Electronics announced that its Q1 2022 revenue reached 77 trillion KRW, with an operating profit of 14.1 trillion KRW. This represents an increase of 17.76% and 50.32%, respectively, compared to the same period last year. This is the first time Samsung's Q1 revenue has exceeded 70 trillion KRW, marking a 14.8% increase over the previous Q1 record of 65.3885 trillion KRW set last year.

However, Samsung Electronics' stock price has not reflected these results and remains trapped in the 60,000 KRW range. As of 9:02 AM on the same day, Samsung's stock price fell 0.58% from the previous trading day to 68,100 KRW, breaking the 52-week low. Samsung previously recorded a 52-week low of 68,300 KRW on October 13 of last year.

In response, securities firms have varied outlooks on Samsung Electronics' stock price. IBK Investment & Securities forecasts Samsung's annual revenue and operating profit at 313.907 trillion KRW and 60.508 trillion KRW, respectively, raising its target stock price from 90,000 KRW to 100,000 KRW.

DB Financial Investment also maintained its target price at 100,000 KRW based on earnings forecasts. Researcher Eo Gyu-jin of DB Financial Investment predicted, "Starting with NAND in Q2 this year, DRAM prices will rebound by Q3."

Conversely, many securities firms have lowered their target prices for Samsung Electronics due to inflation and interest rate hikes. Eugene Investment & Securities lowered its target from 93,000 KRW to 88,000 KRW, while SangSangIn Securities cut theirs from 82,000 KRW to 77,000 KRW.

Kim Jang-yeol, a researcher at SangSangIn Securities, analyzed, "Operating profit will not influence the stock price. As long as macro issues persist, the stock price could fall to the low 60,000 KRW range."

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