Brokerage : Daishin Securities
Analyst : Hyung-keun Ryu (RA: Ji-won Seo)
Investment Rating : BUY (Maintained)
Target Price : KRW 270,000 (Maintained)
Core Momentum : Explosive earnings growth is projected to continue, supported by steep memory ASP hikes amid tight supply, broad price acceptance across major mobile customers in 2Q, and favorable market shifts driven by AI inference expansion.
📊 1. [Valuation & Key Financial Metrics]
- Investment Rating & Target Price: BUY maintained, 6-Month Target Price maintained at KRW 270,000 (Current price as of report date: KRW 193,100)
- Key Valuation Multiples (2026F): P/E 5.4x, P/B 2.0x, ROE 43.6%
- Per-Share Metrics (2026F): EPS KRW 34,954, BPS KRW 97,354
- Annual Financial Projections:
- 2024A: Revenue KRW 300.87T, Operating Profit KRW 32.73T, Net Profit (Controlling) KRW 33.62T
- 2025A: Revenue KRW 333.61T, Operating Profit KRW 43.60T, Net Profit (Controlling) KRW 44.26T
- 2026F: Revenue KRW 637.42T, Operating Profit KRW 306.65T, Net Profit (Controlling) KRW 235.44T
- 2027F: Revenue KRW 734.67T, Operating Profit KRW 335.25T, Net Profit (Controlling) KRW 252.79T
🚀 2. [Market Opportunities & Business Outlook]
- 1Q26 Preliminary Results Review:
- Revenue reached KRW 133T (QoQ +42%, YoY +68%), Operating Profit reached KRW 57.2T (OPM 43.0%)
- Memory ASP: Driven by tight supply and severe supply-demand imbalances, 1Q26 ASP increased +92% QoQ for DRAM and +87% QoQ for NAND
- Operating Profit by Division:
- DS (Semiconductor): KRW 53.0T (Memory KRW 54.5T, Non-Memory operating loss of KRW 1.5T)
- Other Divisions: MX KRW 3.4T (~59M smartphone shipments, flagship ASP increases and mix improvement), SDC KRW 0.3T, CE/VD KRW 0.2T, Harman KRW 0.3T
- 2Q26 & Future Business Outlook:
- Mobile Memory Momentum: Large mobile OEMs are accepting price increases, triggering sequential pricing gains that benefit Samsung given its relatively higher mobile exposure
- Non-Memory Improvement: Utilization rate recovery across leading and mature nodes is expected to narrow quarterly operating losses, with the Foundry division projected to turn profitable in 4Q26
- High-Value Memory Competitiveness: Enhanced competitiveness in high-value products such as HBM is expected to elevate overall earnings momentum
📝 Editor’s Comment (Perspective)
The analyst views Samsung Electronics as a key player in a memory semiconductor boom poised to deliver explosive earnings growth, supported by sharp memory price increases amid tight supply, favorable exposure to expanding AI inference, and widespread price acceptance from mobile OEMs. This perspective places primary emphasis on the need to re-evaluate the memory boom and the substantial earnings leverage driven by steep DRAM/NAND ASP increases and higher mobile exposure, which outweighs near-term non-memory operating losses.
To verify whether this investment thesis continues to materialize, key verification points include whether mobile memory price hikes in 2Q translate directly into realized earnings, whether competitiveness in high-value memory such as HBM shows tangible improvement, and whether utilization recovery across foundry nodes successfully narrows non-memory quarterly losses and leads to profitability by 4Q26. These developments can be tracked through upcoming quarterly earnings releases, official IR materials, regulatory filings, and periodic financial reports.
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