Ultimately Falling to 50,000 Won... Despite Warnings of "Not the Bottom Yet," What Will Ant Investors Do with Their Bold Bets?

Samsung Electronics Vice Chairman Lee Jae-yong is departing for a business trip to Europe on the 7th through the Gimpo Business Aviation Center (SGBAC) in Gangseo-gu, Seoul. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Lee Seon-ae] The dream of Donghak ants aiming for the '100,000 won electronics' has been dashed. The barely holding '60,000 won electronics' collapsed in an instant. Ultimately, Samsung Electronics fell to the '50,000 won electronics' status, and the securities industry is sending the view that 'this is still not the bottom,' filling individual investors with sighs.

According to the Korea Exchange on the 18th, Samsung Electronics closed at 59,800 won, down 1.81% from the previous day, falling to the '50,000 won electronics' level. This is about 1 year and 7 months since it recorded 58,500 won on November 4, 2020, based on the closing price. Compared to the high point recorded during last year's bull market, it has fallen by 38%. At that time, 5 million small shareholders of Samsung Electronics dreamed of '100,000 won electronics.' Since the beginning of this year, it has continuously hit new lows, falling to the '60,000 won electronics' status, and eventually, even this collapsed.

Although individual investors' sighs are deep, under the perception that 'now is the cheapest,' the movement to diligently accumulate shares is also gaining momentum. From the 13th to the previous day, the stock most purchased by individuals was Samsung Electronics. During this period, the net purchase amount reached 894 billion won.

The problem is that there is still a view that Samsung Electronics' bottom remains. The securities industry predicts that in the worst case, Samsung Electronics' stock price could fall to around 53,000 won, and there is a strong voice advising individuals to be cautious about 'picking up bargains.'

Global liquidity is declining, and concerns that the economy will enter a recession due to deteriorating U.S. manufacturing indicators are negatively affecting Samsung Electronics' stock price. Additionally, if the worst-case scenario worsens, such as China's continued lockdown measures that could impact memory semiconductor prices, there is speculation that Samsung Electronics' stock price could fall further.

Sangsangin Securities estimates the realistic bottom for Samsung Electronics' stock price to be in the 57,000 won range, but if the worst-case scenario is reflected, it could fall to 53,000 won. At the same time, they lowered Samsung Electronics' target price from 77,000 won to 73,000 won. Kim Jang-yeol, head of the Sangsangin Securities Research Center, said, "In a situation where concerns about a global economic recession are growing, Samsung Electronics' profit outlook is of no use to the stock price in the short term," adding, "Assuming the worst-case scenario where inflation and global geopolitical risks continue, a temporary sharp drop in stock price is also possible."

Kiwoom Securities also recently set Samsung Electronics' target price 11% lower than before, at 89,000 won. Park Yoo-ak, a researcher at Kiwoom Securities, said, "Samsung Electronics' target price was lowered reflecting changes in memory semiconductor earnings forecasts, but the investment opinion remains 'buy.'"

Eugene Investment & Securities also lowered the target price from 88,000 won to 79,000 won. Shinhan Financial Investment also adjusted it downward from 87,000 won to 83,000 won. Lee Seung-woo, head of Eugene Investment & Securities Research Center, explained, "Rising interest rates will eventually accumulate and become more burdensome to the global economy from the second half of this year," adding, "So far, the focus has been on demand slowdown, but over time, doubts about companies' investment plans are likely to grow." He presented Samsung Electronics' operating profit forecasts for this year and next year as 58.3 trillion won and 40.8 trillion won, respectively, down 4% and 18% from previous estimates.

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