'Expectation for 90,000 Electronics'... Samsung Electronics' Second Half Performance Expected to be the Largest in Four Years, Kiwoom·KB Securities

[Financial News] Samsung Electronics is expected to expand its performance improvement from the third and fourth quarters, recording the highest operating profit in four years in the second half of this year. 
According to the securities industry on the 24th, Kiwoom Securities analyst Park Yu-ak stated in a report titled 'HBM Shipment Surge, Performance Surprise Expected' that Samsung Electronics' operating profit in the third and fourth quarters is expected to increase by 93% year-on-year to 9 trillion won. Samsung Electronics previously recorded an operating profit of 4.6 trillion won in the second quarter, a 55% decrease year-on-year.
Analyst Park expected, "The shipment of high-bandwidth memory (HBM) is expected to surge by 107% year-on-year, exceeding initial expectations, and the operating deficit in the foundry division will be significantly reduced due to the sharp rise (15% increase) in mobile DRAM prices." In particular, for HBM4, which will become full-scale from next year, "Although product testing remains for several months, it is judged that Samsung Electronics' market share in Nvidia Rubin will increase to about 30%." He also predicted, "Samsung Electronics' foundry division will continue its mid- to long-term performance turnaround by securing Qualcomm as a new customer in addition to Tesla and Apple." Samsung Electronics signed a supply contract worth 16.5 billion dollars (about 23 trillion won) with Tesla last month. The contract period is from July 24 to December 31, 2033, making it a long-term contract of over 8 years. This accounts for 7.6% of Samsung Electronics' total sales of 300.8 trillion won, the largest for a single customer in the semiconductor division of Samsung Electronics. Earlier this month, it also announced that it would produce next-generation chips with Apple.

Kim Dong-won, a researcher at KB Securities, also stated in a report titled 'Risk Mitigation Turning Point' that Samsung Electronics will face a turning point where domestic and foreign risks will be lifted in the second half of this year, and presented Samsung Electronics as the top pick in the semiconductor sector. Researcher Kim explained, "It is expected to mitigate the uncertainty of the HBM business for Nvidia, such as better-than-expected results for HBM4 sample tests." Researcher Kim expected Samsung Electronics' operating profit in the second half of this year to reach 18 trillion won (a 14.8% increase year-on-year), the highest in four years since the second half of 2021 (29.6 trillion won).
In this atmosphere, securities firms have raised their target stock prices for Samsung Electronics. On the 22nd, Kiwoom Securities raised it from 89,000 won to 90,000 won, and earlier on the 1st, Shinyoung Securities raised it from 73,000 won to 80,000 won, Mirae Asset Securities from 78,000 won to 88,000 won, and NH Investment & Securities from 79,000 won to 84,000 won.
ehcho@fnnews.com Eunhyo Cho Reporter