"Samsung Electronics to Reach 450,000 Won Despite Strike Fears" Memory Chips as a Rare Strategic Asset... Daejoo Electronic Materials to Benefit from Samsung Electro-Mechanics' MLCC Boom [Jutopia]

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[Financial News] Here is a roundup of major brokerage reports as of 10 a.m. on May 15.
Analysts said Samsung Electronics is seeing stronger earnings momentum, even as strike concerns linger, amid a deepening memory supply shortage next year and fierce competition among Big Tech firms to secure AI infrastructure.
Samsung Life Insurance posted an earnings surprise in the first quarter, but analysts pointed to the unclear use of its rapidly expanding capital and the irony of a declining return on equity (ROE). Daejoo Electronic Materials, a producer of silicon-based anode material, is expected to continue delivering differentiated results thanks to spillover effects from Samsung Electro-Mechanics' MLCC boom and new customer wins.
\r\n\r\n◆Samsung Electronics (005930)— KB Securities / Kim Dong-won, head of research
- Target price: 450,000 won (raised 25% from 360,000 won) | Previous close: 296,000 won
- Investment rating: Buy
KB Securities raised its target price for Samsung Electronics to 450,000 won, saying memory supply shortages will deepen next year and earnings momentum is strengthening despite strike concerns.
Samsung Electronics is projected to post second-quarter operating profit of 90 trillion won, up 19 times from a year earlier, with an operating margin of 51%. Capital expenditures by the four major Big Tech firms are also expected to exceed $725 billion, or about 1,082 trillion won, next year.
Kim Dong-won stressed that "in the AI infrastructure structure, memory semiconductors will be revalued as a rare strategic asset that goes beyond a simple component and determines the performance and scalability of the entire AI system."
He added that "the pace of earnings improvement is actually accelerating, so any share price correction should be seen as an opportunity to increase exposure."
\r\n\r\n◆Samsung Life Insurance (032830)— Daishin Securities / Park Hye-jin, analyst
- Target price: 278,000 won (raised 26.4% from 220,000 won) | Previous close: 330,000 won
- Investment rating: Neutral (maintained)
Daishin Securities raised its target price for Samsung Life Insurance to 278,000 won, saying the company delivered an earnings surprise that far exceeded market expectations thanks to strong investment income in the first quarter, while keeping its neutral rating unchanged.
That means the company’s results improved, but the stock has already risen much more, so additional buying is not recommended.
Park Hye-jin analyzed that the amount previously set aside as a provision was reflected in investment profit after the company won a lawsuit related to immediate annuities, while dividend income increased as subsidiaries such as Samsung Securities and Samsung Card improved their earnings.
She also noted that "despite having the best fundamentals in the industry, there is no clear plan for how to use the rapidly expanding capital, and an ironic situation is emerging in which ROE is falling."
\r\n\r\n◆Daejoo Electronic Materials (078600)— KIWOOM Securities / Junsu Kwon, analyst
- Target price: 200,000 won (raised 25% from 160,000 won) | Previous close: 155,500 won
- Investment rating: Buy
KIWOOM Securities raised its target price for Daejoo Electronic Materials to 200,000 won, saying the company will continue to post differentiated results thanks to spillover effects from the boom in multilayer ceramic capacitors (MLCC).
Kwon Junsu said that "Daejoo Electronic Materials is included in Samsung Electro-Mechanics' supply chain for MLCC conductive paste, so the spillover effects from the solid MLCC market will continue," adding that "the silicon-based anode material segment is also expected to see clear sales growth through entry into new vehicle models and new customers."※ Silicon-based anode materialThis is a key next-generation battery material that uses silicon instead of conventional graphite anodes. It can raise energy density by more than four times compared with graphite, playing a crucial role in extending electric vehicle driving range and shortening charging time.
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sms@fnnews.com Sung Min-seo Reporter