Despite the Realization of Nationalism's Fall to '40,000 Won Electronics'... Retail Investors Bought Again

[Image source=Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Samsung Electronics, a national stock, has been hitting new lows day after day. Once called the '100,000-won stock,' some in the securities industry now predict that Samsung Electronics' price could fall to as low as '40,000-won.' Amid this, individual investors are seen taking this as a 'buying opportunity at a low price,' raising concerns.

According to the Korea Exchange on the 3rd, on the last trading day of September 30, Samsung Electronics fell to 51,800 won during the session, setting a new 52-week low once again. It then rebounded to close at 53,100 won. This marks a 33.46% decline since the beginning of this year. Samsung Electronics recorded its highest price of 79,800 won on the first trading day of the year, January 3, and has been on a downward trend since.

However, individual investors are continuing to buy, viewing the stock price decline as a 'buying opportunity' based on expectations of semiconductor market recovery and Samsung Electronics' earnings improvement. In September alone, individual investors purchased 1.941 trillion won worth of Samsung Electronics common stock. The net purchase amount since the beginning of the year is 18.0333 trillion won, and including preferred shares (1.8356 trillion won), the total net purchase amount this year reaches 19.869 trillion won.

Contrary to the expectations of individual investors, the securities industry forecasts that the '40,000-won stock' is imminent due to Samsung Electronics' continuous decline. This is because the semiconductor demand slump and the slowdown in the industry are accelerating. Hi Investment & Securities predicts that Samsung Electronics could fall to 46,300 won.

Song Myung-seop, a researcher at Hi Investment & Securities, said, "We forecast Samsung Electronics' third-quarter operating profit at 11.6 trillion won," adding, "The average selling price (ASP) of DRAM and NAND flash fell by 15%, and this downward trend is likely to continue into the fourth quarter."

Researcher Song added, "Currently, Samsung Electronics' stock price has fallen 46% from last year's peak of 96,800 won due to further declines in valuation multiples caused by the U.S. interest rate hike trend, dollar strength, and economic slowdown concerns," and said, "In the worst-case scenario, if the valuation multiple falls to the historical low of 0.94 times, Samsung Electronics' stock price could drop to 46,300 won, with a maximum downside risk estimated at 12%."

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