[Click eStock] "Samsung Electronics, Memory Market Recovery Expected... Target Price Up"

DS Investment & Securities analyzed on the 28th that Samsung Electronics is expected to see a performance rebound starting from the second quarter of this year due to the rapid recovery of the memory market.

Researcher Lee Surim of DS Investment & Securities stated, "The operating profit for the first quarter is estimated to fall short of market consensus," adding, "The main reasons are the continued losses due to low utilization rates in the foundry sector and the expected shift to losses caused by inventory adjustments and production cuts in the NAND sector." The display sector is also expected to see a decline in profits compared to the previous year due to the off-season impact and intensified competition within its largest customer base.

However, the researcher emphasized, "It should be noted that the market has already recognized Samsung Electronics' poor first-quarter performance." In particular, a performance rebound is expected in the second quarter due to early stabilization of memory prices and increased LPDDR4 orders within China.

Recently, in the Chinese mobile DRAM market, inventory adjustments are entering the final stages, and spot prices for DDR4 are rising following DDR5. The researcher explained, "CXMT's supply is not fully meeting the demand for LPDDR4, which is mainly installed in mid-to-low-end smartphones eligible for subsidies in China." Despite the supply shortage, memory companies are maintaining a conservative supply stance, stimulating customers' inventory accumulation sentiment, and the price increase trend is expected to become more pronounced within the first half of the year.

Additionally, there is also standby demand for the improved HBM3e 12-layer product that Samsung Electronics plans to launch between the end of the second quarter and the third quarter, making this a valid time to expect a short-term rebound in the memory market. However, the researcher added, "For a sustained upward trend in the stock price in the future, the resolution of foundry losses and structural improvements in high-performance memory must accompany it."

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