"Samsung Electronics to Hit 150,000 KRW"—Next Year’s DRAM Operating Profit Projected at 60 Trillion KRW... LS Group’s Copper Smelting Subsidiary Turns Profitable [Stocktopia]

[Financial News] On the morning of November 21, we summarize key reports from major securities firms.
Samsung Electronics is expected to post an operating profit of 60 trillion KRW from dynamic random-access memory (DRAM) next year. Hanwha Engine is projected to set a new record with annual orders exceeding 2 trillion KRW. LS Group’s copper smelting subsidiary is rapidly recovering its profitability, prompting an upward revision of its target stock price.
◆Samsung Electronics (005930)― KB Securities / Kim Dong-won, Head of Research
- Target price: 150,000 KRW
- Investment opinion: Buy
KB Securities projected that Samsung Electronics will be the biggest beneficiary of next year’s DRAM supply shortage, with DRAM operating profit expected to reach 60 trillion KRW. Kim Dong-won, Head of Research, explained that as the DRAM supply crunch intensifies in the fourth quarter, Samsung Electronics is expected to convert its general-purpose 1z DRAM production lines to 1b DRAM, which should lead to a ‘surprise’ increase in shipments next year.
◆Hanwha Engine (082740)― Daol Investment & Securities
- Target price: Not provided
- Investment opinion: Not provided
Daol Investment & Securities expects Hanwha Engine to exceed 2 trillion KRW in orders this year, setting a new all-time high. Although container ship orders slowed in the first half of the year due to the Office of the United States Trade Representative (USTR)’s checks on China’s shipbuilding industry, orders from China have surged again around the one-year grace period. Daol Investment & Securities anticipates that Hanwha Engine’s 2024 volume will begin deliveries in the fourth quarter, with a significant increase expected in the first quarter of next year.
◆LS Group (006260)― KIWOOM Securities / Jonghyung Lee, Researcher
Target price: 260,000 KRW
Investment opinion: Buy
KIWOOM Securities highlighted that LS MnM, LS Group’s copper smelting subsidiary, has returned to profitability, raising its target price to 260,000 KRW—an increase of 13%. Researcher Jonghyung Lee noted that despite worsening copper smelting fees, profitability improved faster than expected due to higher precious metal prices and a rising KRW-USD exchange rate. Lee added that LS MnM is expected to see further performance improvements in the fourth quarter, supported by record-high precious metal prices and a structurally higher exchange rate.

sms@fnnews.com Seong Min-seo Reporter