[Click eStock] "Samsung Electronics Q2 Earnings Expected to Slightly Exceed... Sector's Second-Best Pick"

Daol Investment & Securities forecasted on the 21st that Samsung Electronics' second-quarter earnings will slightly exceed expectations. They maintained a 'Buy' investment rating and a target price of 110,000 KRW.

Daol Investment & Securities stated, "We expect the second-quarter operating profit to rise 27% quarter-on-quarter to 8.4 trillion KRW, and sales to increase 12% to 80.2 trillion KRW, slightly surpassing estimates." They raised the semiconductor (DS) segment estimate from 4 trillion KRW to 5 trillion KRW, while lowering the mobile (MX) segment estimate from 2.8 trillion KRW to 2 trillion KRW.

Daol Investment & Securities projected Samsung Electronics' annual sales to increase 28% year-on-year to 330 trillion KRW, and operating profit to surge 89% to 37.8 trillion KRW. They evaluated, "As we move into the second half of the year, improvements in legacy demand are expected to be reflected in the results," adding, "It is positive that a recovery trend centered on general servers has already been confirmed from the second quarter."

They anticipated that the earnings leverage effect of semiconductors will become more pronounced by 2025. Daol Investment & Securities said, "We expect the DS segment's operating profit to reach 53.8 trillion KRW in 2025, with total company operating profit at 71.5 trillion KRW," adding, "If competitiveness in HBM and high-capacity eSSD is further enhanced, additional profit maximization will be possible."

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