Published 19 Apr.2023 08:31(KST)
On the 19th, KB Securities analyzed that Samsung Electronics is expected to increase semiconductor production cuts, making the second quarter an opportune time to buy. Accordingly, they maintained their investment opinion as 'Buy' and the target price at 80,000 KRW.
Dongwon Kim, a researcher at KB Securities, stated, "The scale of Samsung Electronics' memory semiconductor production cuts is expected to significantly exceed market expectations, increasing the likelihood of semiconductor supply and demand improvement from the third quarter. The memory semiconductor production cuts by Samsung Electronics, which are expected to surpass forecasts, will directly contribute to stabilizing Samsung Electronics' memory semiconductor inventory levels and slowing price declines in the second quarter."
Currently, in the second quarter, the yield of Samsung Electronics' system semiconductor business's leading-edge processes?3nm, 4nm, and 5nm foundry?is estimated to have improved significantly to 70-90% compared to the previous year. Additionally, Samsung Electronics is preparing for mass production of the 3nm 2nd generation Gate-All-Around (GAA) process starting next year, which is believed to have substantially closed the technology gap with TSMC, which is preparing the 3nm FinFET process.
Since the beginning of this year, foreign net purchases of Samsung Electronics have reached 6.8 trillion KRW. The foreign ownership ratio stands at 51.52%, up 1.85 percentage points from the start of the year, marking the highest level since April 6, 2022. This is due to the absolute price attractiveness compared to global competitors and the expected improvement in semiconductor supply and demand from production cuts starting in the second half of the year.
Researcher Kim added, "Samsung Electronics is expected to emerge as an attractive investment destination going forward, and the trend of foreign net purchases is likely to continue for the time being."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.