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

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[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-won range. Securities firms’ stock price forecasts are also uncertain.

Samsung Electronics Posts Record-Breaking Q1 Earnings but Remains in the '60,000-Won Range'

On the 7th, Samsung Electronics announced that its Q1 2022 revenue reached 77 trillion won, with an operating profit of 14.1 trillion won. This represents increases 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 won, marking a 14.8% increase over the previous Q1 record of 65.3885 trillion won set last year.

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

Better Earnings Ahead... Securities Industry Positive on Samsung Electronics Outlook

Unlike the stock price, Samsung Electronics’ earnings remain solid. IBK Investment & Securities forecasts Samsung’s annual revenue and operating profit at 313.907 trillion won and 60.508 trillion won, respectively, raising its target stock price from 90,000 won to 100,000 won.

DB Financial Investment also maintained its target stock price at 100,000 won based on earnings forecasts. DB Financial Investment analyst Eo Gyu-jin predicted, “Starting with NAND in Q2 this year, DRAM prices will rebound by Q3.”

Uncertain Macro Environment and DRAM Growth... Securities Firms Lower Target Prices

Conversely, many securities firms have lowered Samsung Electronics’ target stock price due to inflation and interest rate hikes. Eugene Investment & Securities cut its target from 93,000 won to 88,000 won, while Sangsangin Securities lowered theirs from 82,000 won to 77,000 won.

Lee Seung-woo, an analyst at Eugene Investment & Securities, analyzed, “There are doubts about whether DRAM growth will continue amid inflation, interest rate hikes, and increased consumption patterns post-COVID.”

Kim Jang-yeol, an analyst at Sangsangin Securities, also said, “Operating profit will not affect the stock price. As long as macro issues persist, the stock price could fall to the low 60,000-won range.”

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