Brokerage : Kiwoom Securities
Analyst : Yu-ak Park
Investment Rating : BUY (Maintained)
Target Price : KRW 260,000 (Upgraded)
Core Momentum : Full-year 2026 operating profit is revised upward to KRW 200T driven by surging mobile memory ASPs, alongside an anticipated transition toward Capex expansion and shipment-led volume growth as commodity price surges reach a late stage.
📊 1. [Valuation & Key Financial Metrics]
- Investment Rating & Target Price: BUY maintained, Sector Top Pick maintained, Target Price upgraded to KRW 260,000 (Previous KRW 210,000; current price as of February 27, 2026: KRW 216,500)
- Key Valuation Multiples (2026F): P/E 9.4x, P/B 2.6x, ROE 31.0%, EV/EBITDA 1.2x, Dividend Yield (25E) 2.8%
- Per-Share Metrics (2026F): EPS KRW 23,122 (YoY +250.6%), BPS (25E) KRW 64,814
- Annual Financial Projections:
- 2023: Revenue KRW 258.94T, Operating Profit KRW 6.57T, Net Profit (Controlling) KRW 14.47T
- 2024: Revenue KRW 300.87T, Operating Profit KRW 32.73T, Net Profit (Controlling) KRW 33.62T
- 2025F: Revenue KRW 333.61T, Operating Profit KRW 43.64T, Net Profit (Controlling) KRW 44.28T
- 2026F: Revenue KRW 537.22T (KRW 537T in text, YoY +61%), Operating Profit KRW 200.41T (KRW 200T in text, YoY +359%, OPM 37.3%), Net Profit (Controlling) KRW 152.78T
🚀 2. [Market Opportunities & Business Outlook]
- 1Q26 Earnings Preview (Earnings Surprise Anticipated):
- Projected Revenue of KRW 120T (+28% QoQ) and Operating Profit of KRW 38T (+89% QoQ), beating consensus (Revenue KRW 113T, Operating Profit KRW 34.5T)
- Surging ASPs: DRAM and NAND ASPs estimated to surge +65% QoQ and +67% QoQ, respectively, as AI memory strength broadens into mobile memory products (LPDDR5x, UFS, etc.)
- 1Q26 Operating Profit by Segment: DS KRW 36T (+122% QoQ), SDC KRW 0.3T (-84% QoQ), MX/NW KRW 1.8T (-4% QoQ), VD/DA loss of KRW 0.3T (loss continues)
- 2026 Earnings Upgrades & ASP Assumptions:
- Full-year 2026 DRAM blended ASP growth revised up to +136% YoY (commodity DRAM +145% YoY), and NAND ASP growth revised up to +135% YoY
- Sequential earnings growth expected to continue in 2Q, supporting the full-year trajectory
- Cycle Turning Point & Core Business Catalysts:
- The surge in commodity memory prices is entering its concluding phase; elevated prices and profitability are projected to trigger Capex growth, marking a cycle turning point toward supply-demand stabilization and volume expansion
- Key catalysts include eSSD competitiveness recovery via Gen-9 V-NAND mass production ramp, HBM4 volume expansion, and turnaround momentum in non-memory
📝 Editor’s Comment (Perspective)
The analyst views Samsung Electronics as entering a KRW 200T annual operating profit era propelled by mobile memory ASP spikes expanding from AI demand, while standing at an industry turning point where elevated pricing transitions into Capex expansion and shipment-driven volume growth. This perspective places primary emphasis on robust upward earnings revisions fueled by mobile and commodity memory ASP gains, alongside tangible business catalysts—such as Gen-9 eSSD competitiveness, HBM4 ramp-up, and non-memory turnaround—rather than near-term valuation multiple concerns.
To verify whether this investment thesis continues to materialize, key verification points include whether realized 1Q (KRW 38T) and full-year DRAM/NAND ASP gains and operating profit (KRW 200T) meet upgraded forecasts, whether Gen-9 V-NAND-based eSSD competitive recovery and HBM4 mass production proceed on schedule, and whether the non-memory division demonstrates visible progress toward quarterly operating profitability. These developments can be monitored through upcoming quarterly earnings announcements, official IR materials, regulatory filings, and periodic financial reports.
📢 Disclaimer & Source
Source: This content has been structured and newly written based on officially disclosed financial facts and data from brokerage reports.
Investment Risk Notice: This content is provided for informational and linguistic reference purposes only. Under no circumstances does it constitute financial advice or a recommendation to buy or sell any specific securities. All investment decisions and financial responsibilities rest entirely with the investor.
Contact: Compliance and Copyright Inquiries (ksb220805@gmail.com)
