“Samsung Electronics Co., Ltd. No. 1 globally in operating profit ... headed for 600,000 won”

[Financial News] On the 12th, KB Securities maintained its “Buy” rating and 600,000-won target price for Samsung Electronics Co., Ltd., saying higher prices for high-bandwidth memory (HBM) and expanded shareholder returns would drive a re-rating of the stock.
Kim Dong-won, head of research at KB Securities, said that day, “Samsung Electronics Co., Ltd., the global No. 1 in operating profit, is trading at around four times earnings (P/E),” adding, “We believe there is no reason to apply a valuation discount to the world’s largest profit-generating company.”
KB Securities assessed Samsung Electronics Co., Ltd.’s third-quarter operating profit at about 107 trillion won, higher than NVIDIA Corporation’s estimated operating profit of 97 trillion won for the same quarter. Kim said, “It has set a historic milestone by becoming the global No. 1 in quarterly operating profit,” describing the results as “strong earnings that exceeded market consensus, whose expectations had been lowered by recent exchange-rate fluctuations and the recognition of provisions.”
He cited High Bandwidth Memory 4 (HBM4) as a factor that would drive profit growth next year. Kim said, “HBM selling prices in 2027 will rise by at least 100% year on year, driven by HBM4, the industry’s highest-priced product, leading next year’s increase in DRAM prices,” and forecast that “HBM4, the highest-priced offering among the three DRAM makers, will drive up DRAM average selling prices (ASP) starting in the first quarter of next year.”
He also cited expanded shareholder returns as a key investment rationale. Kim said, “Assuming the remaining funds available for shareholder returns over the past three years total 110 trillion won, we estimate that returns could include 70–80 trillion won in cash dividends and 30–40 trillion won through the cancellation of treasury shares.”
He estimated that “the next shareholder-return policy could provide returns exceeding the existing benchmark of 50% of free cash flow (FCF),” adding, “Even if the company returns only 50% of free cash flow, as before, the scale of shareholder returns is expected to increase to at least four times its previous level.”
KB Securities forecast Samsung Electronics Co., Ltd.’s fourth-quarter operating profit at 114 trillion won. It estimated that operating profit in the memory division would account for 113 trillion won of that total.
Kim emphasized, “Samsung Electronics Co., Ltd. is expected to enter an accelerated phase of profit growth from 2027 as the global No. 1 in operating profit,” adding, “A shareholder-return policy that exceeds market expectations will serve as a powerful catalyst for a re-rating of the stock.” 
[email protected] Joo Won-gyu Reporter