[Click eStock] "Samsung Electronics Target Price Lowered... DS Performance Expected to Decline"

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On the 4th, IBK Investment & Securities forecasted that Samsung Electronics' third-quarter earnings would fall short of previous estimates. Accordingly, they maintained a 'Buy' investment rating but lowered the target price to 95,000 KRW.

Kim Unho of IBK Investment & Securities stated, "Samsung Electronics' third-quarter 2024 revenue is expected to increase by 8.7% quarter-on-quarter to 80.55 trillion KRW, while operating profit is expected to decrease by 2.7% quarter-on-quarter to 10.16 trillion KRW," adding, "both figures are lower than previous forecasts."

Researcher Kim pointed out that the biggest variables in the third-quarter earnings are one-time costs in the Semiconductor (DS) division and the decline in the KRW-USD exchange rate.

He analyzed, "The DS division's average selling price (ASP) increase for general-purpose products was weaker than previously expected, and the volume of HBM3e was also below expectations, which is disappointing. Although the display segment's performance improved compared to the second quarter due to new products from overseas customers as expected, the IT OLED weakness was an unexpected variable."

Researcher Kim added, "The previously weak NAND profitability is judged to be rapidly normalizing due to price rebounds, and the operating profit has entered an improving phase."

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