2024-07-08 15:36:56
Securities firms raised their target stock prices one after another on the 8th, paying attention to Samsung Electronics (005930)’s second-quarter semiconductor earnings surprise. The highest target stock price is 120,000 won.
Kiwoom Securities (039490) raised its target stock price from 110,000 won to 120,000 won (9.1%) on the 8th, and NH Investment & Securities (005940) raised its target stock price from 100,000 won to 120,000 won (20%). In addition, Hana Securities raised its target stock price from 106,000 won to 117,000 won (10.4%), and Hyundai Motor Securities (001500) and Yuanta Securities (003470) raised their target stock price from 100,000 won to 110,000 won (10%). Korea Investment & Securities (030490) and KB Securities maintained their target stock price of 120,000 won.
Samsung Electronics’ preliminary second quarter performance figures announced on the 5th exceeded market expectations, with sales of 74 trillion won and operating profit of 10.4 trillion won, up 23% and 1,456% respectively from the same period last year.
Park Yoo-ak, a researcher at Kiwoom Securities, said, “This is because the effects of rising memory prices and the won-dollar exchange rate were reflected more significantly than expected, so the improvement in profitability in the semiconductor sector exceeded expectations,” adding, “The non-memory sector is also expected to see a significant reduction in its deficit and successfully turn a profit in the second half of the year.”
Ryu Young-ho, a researcher at NH Investment & Securities, said, “This is due to the exchange rate, unit price increases due to the launch of new products by SDC’s clients, and the reversal of inventory asset valuation losses due to the rise in memory sales prices,” adding, “As we enter the second half of the year, the intensity of the semiconductor cycle benefits is increasing and the possibility of entering high-bandwidth memory (HBM) is increasing, so the discount factors that had been received so far will be resolved.”
Securities firms predicted that Samsung Electronics’ semiconductor division performance in the second half of the year would exceed expectations.
Researcher Park estimated Samsung Electronics’ operating profit for the third quarter at 14 trillion won, exceeding market expectations.
He said, “Sales of 128GB server DIMMs targeting the artificial intelligence (AI) inference market and eSSDs based on the 9th generation QLC will begin in earnest, and profitability in the memory sector will significantly improve.” He added, “As mass production sales of HBM3e for NVIDIA become visible, we should also keep in mind the possibility that DRAM performance forecasts will be revised upward.”
Kim Rok-ho, a researcher at Hana Securities, also said, “We are raising Samsung Electronics’ annual operating profit for 2024 from the previous 40.3 trillion won to 47.3 trillion won,” adding, “Considering the robust memory industry conditions and the possibility of securing new customers for high-bandwidth memory (HBM), the current PBR of 1.44 times is significantly undervalued compared to similar companies.”
(Seoul = News 1)
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2024-07-08 15:36:56