[Click eStock] "Samsung Electronics, Lowered Expectations for Non-Memory Business... Target Price Down"

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[Asia Economy Reporter Kwon Jae-hee] Hana Financial Investment maintained its 'Buy' rating on Samsung Electronics on the 8th but lowered the target price from the previous 101,000 KRW to 95,000 KRW.

This is interpreted as reflecting lowered expectations for the non-memory semiconductor business.

According to Samsung Electronics' preliminary Q1 earnings announcement the day before, sales reached 77 trillion KRW, and operating profit was 14.1 trillion KRW. Sales increased by 17.76% compared to the same period last year. Both sales and operating profit exceeded market expectations.

Hana Financial Investment estimated operating profits by business division as follows: memory semiconductors 7.6 trillion KRW, non-memory semiconductors 700 billion KRW, display 1 trillion KRW, home appliances 600 billion KRW, mobile 4.1 trillion KRW, and Harman 100 billion KRW.

Researcher Kim Kyung-min of Hana Financial Investment analyzed, "The profit contribution effect from the weak Korean won is believed to have been favorable for the semiconductor and display sectors," adding, "The businesses that showed results exceeding previous operating profit estimates, such as increased memory semiconductor shipments and strong non-memory semiconductor performance, were mainly parts businesses."

Despite the strong performance exceeding market expectations, Hana Financial Investment lowered Samsung Electronics' target price from 101,000 KRW to 95,000 KRW, reflecting lowered expectations for the future non-memory semiconductor business.

Researcher Kim interpreted, "Although the yield of 4-nanometer non-memory semiconductors is still not high, it is improving, and the order flow from North American clients is gradually improving, so the possibility of further stock price decline is considered low."

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