[Click e-Stock] "Samsung Electronics Set for Full-Fledged Earnings Growth... Target Price Raised to 320,000 Won"

Operating Profit Expected to Reach 40 Trillion Won in Q1, a Sixfold Increase Year-over-Year
Q2 Forecast at 51 Trillion Won, Up Elevenfold... Anticipated Earnings Surprise

On March 12, KB Securities raised its target price for Samsung Electronics to 320,000 won, reflecting expectations for earnings growth. The investment rating was maintained at 'Buy'.

Samsung Electronics Suwon Digital City Panorama

Kang Dahyun, an analyst at KB Securities, stated in a report released that day, "Currently, demand for DRAM and NAND flash is increasing rapidly, while supply expansion is expected to remain limited until 2027. As a result, the upward trend in memory prices is likely to continue for the time being." Kang added, "In particular, the rise in generic DRAM prices surpassing those of HBM3E will directly lead to a significant improvement in profitability, and the full-scale shipments of premium HBM4 for Nvidia are also expected to act as positive factors for earnings improvement."

Samsung Electronics' operating profit for the first quarter is estimated at 40 trillion won, a sixfold increase compared to the previous year. Second-quarter operating profit is expected to reach 51 trillion won, an elevenfold increase year-on-year, raising expectations for an earnings surprise. The operating profit for the memory division in the first quarter is estimated at 38 trillion won, an elevenfold increase from a year earlier, and is expected to surpass last year’s annual memory operating profit of 32 trillion won within the quarter alone.

Kang further noted, "It is believed that Samsung Electronics' memory semiconductor capacity is virtually sold out through 2027, and currently, global big tech companies are also expanding discussions on long-term agreements (LTAs) for five-year supply contracts targeting 2030." Kang concluded, "Having entered a full-fledged earnings cycle, Samsung Electronics is now at the initial stage where a re-rating of its stock price is expected to begin, in line with the acceleration of earnings growth going forward."

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