[Click eStock] "Samsung Electronics Target Price Raised to 105,000 Won"

Daol Investment & Securities raised the target price of Samsung Electronics from KRW 100,000 to KRW 105,000 and maintained a buy rating.

Go Young-min, a researcher at Daol Investment & Securities, analyzed, "Recent domestic and international earnings announcements have highlighted opportunity factors in NAND," adding, "Expectations for memory performance have sharply increased for both 2024 and 2025." He anticipated a first phase of recovery in legacy products and a second phase of additional gains during the process of confirming competitiveness in high-value-added products driven by artificial intelligence demand.

In the first quarter, sales reached KRW 71.9 trillion, and operating profit was KRW 6.6 trillion. The recovery in performance is accelerating due to inventory valuation gains and a mix of high-value-added products. Notably, trends indicate that AI demand is expanding beyond DRAM to NAND as well. It was confirmed that NAND, based on high-capacity eSSD for servers, has the potential to show a steep improvement in performance similar to DRAM.

For the second quarter, sales are projected at KRW 80.2 trillion, with operating profit at KRW 8.3 trillion. The full recovery of legacy demand is expected to begin in the second half of this year. Amid demand conditions similar to the first quarter, shipments centered on high-value-added products are expected to be maintained. The environment is assessed as one where profitability improvements can continue alongside the ongoing rise in ASP.

For 2024, sales were raised to KRW 331 trillion, and operating profit to KRW 39.7 trillion. The overall recovery of legacy demand, in addition to AI demand, is expected in the second half of 2024. The entry into a full upcycle is imminent, and the leverage effect on performance is expected to be maximized increasingly toward 2025.

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