Semiconductor Industry Slump... Samsung Electronics Lowers Annual Earnings Forecast

Slight Decrease Expected in Annual Operating Profit This Year
Operating Profit in 2023 Expected to Decrease by 25% Compared to This Year
Stock Price Down 38% from Peak... Reflects Larger Decline Than Earnings Drop

[Asia Economy Reporter Hwang Yoon-joo] An analysis has emerged suggesting that Samsung Electronics' annual performance should be lowered due to the semiconductor industry's downturn in the second half of the year.

According to FnGuide on the 10th, Samsung Electronics' sales this year are estimated at 320.4434 trillion KRW, a 14.61% increase compared to the same period last year, and operating profit is expected to rise by 14.24% to 58.988 trillion KRW.

Researcher Lee Seung-woo of Eugene Investment & Securities explained, "We are lowering Samsung Electronics' 2022 operating profit estimate by 5% to 55.1 trillion KRW," adding, "It is inevitable to adjust expectations for corporate performance in the second half."

The reason for the downward revision is concerns over an economic recession and the semiconductor industry's sluggishness. Researcher Lee analyzed, "With cost-push inflation and interest rate hikes reducing households' real income, corporate earnings are also falling short of expectations," and "Durable goods consumption and IT infrastructure investment are also likely to slow down more than expected."

Micron, which announced its earnings earlier, indicated a significant decline in memory demand, hinting at a decrease in shipments this quarter. However, in the case of memory, voluntary or involuntary investment reductions are expected to proceed more sharply, which is likely to act as a buffer against the shock companies face.

Researcher Lee predicted that Samsung Electronics' operating profit in 2023 will decrease by 25% compared to this year. He evaluated, "However, the operating profit estimate is raised by 2% to 41.5 trillion KRW compared to the previous estimate," adding, "The stock price has fallen by up to 38% from the peak based on closing prices, reflecting this more significantly."

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