[Click eStock] "Samsung Electronics, Stock Price Plunge Excessive... Judged as a Buying Opportunity"

On the 6th, Kiwoom Securities stated about Samsung Electronics, "Considering its solid fundamentals and earnings outlook for the second half of this year, the sharp stock price drop the previous day was excessive. We view this as a buying opportunity," and added, "We maintain our target price of 120,000 KRW and our top pick rating for the semiconductor sector."

On the same day, Park Yu-ak, a researcher at Kiwoom Securities, said, "We have experienced financial crises, the European debt crisis, the US-China trade dispute, and COVID-19, but a stock price plunge like the one the previous day is extremely rare and excessive, having occurred only once before."

Samsung Electronics' stock price, which had been relatively steady, plunged sharply (-10.30%) the previous day. Since 2000, Samsung Electronics has experienced a drop of more than 10% a total of seven times. Researcher Park emphasized, "Some in the market seem to think that the current artificial intelligence (AI) boom is similar to the dot-com bubble in the early 2000s, but during the dot-com bubble, when Samsung Electronics had solid fundamentals, the initial stock price drop was followed by a 25% rebound over the next month (including a 10% rebound over four trading days). During the financial crisis, after hitting the bottom, the stock price surged 32% over four trading days."

He said, "Samsung Electronics' earnings in the second half of this year are expected to exceed market forecasts, with sales reaching 166 trillion KRW, a 13% increase from the first half, and operating profit rising 80% to 31 trillion KRW. This is because the sales proportion of high-value-added products such as 4th and 5th generation high-bandwidth memory (HBM) is expanding, and the price increase rate of general-purpose DRAM is expected to surpass estimates."

He added, "Samsung Electronics' HBM business will enter its main growth phase in the second half of this year, achieving more than three times sales growth compared to the first half, with the 5th generation HBM (HBM3E) accounting for 60% of sales. The price increase of general-purpose DRAM and the market entry of HBM3E will serve as catalysts for a stock price rebound."

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