“Samsung Electronics to hit 500,000 won... Shareholder returns are only a matter of timing” ... Hyundai Motor target price cut amid currency headwinds and a lull in new businesses [Stocktopia]

[Financial News] Here is a roundup of reports from major securities firms on the morning of October 30.
Analysts say Samsung Electronics Co., Ltd. remains committed to strengthening shareholder returns and is expected to secure the top HBM market share next year, making now an opportunity to increase its weighting.
Hyundai Motor’s target price was cut to reflect a lower exchange-rate forecast and a prolonged lull in new-business momentum, while its Buy rating was maintained. Doosan Enerbility was assessed as having limited further downside despite its recent share-price correction, with orders for nuclear power plants, small modular reactors (SMRs) and gas turbines around year-end and the start of next year expected to drive its share price higher.
◆ Samsung Electronics Co., Ltd. (005930)― Daishin Securities / Researcher Hyungkeun Ryu
- Target price: 500,000 won (maintained) ᅵ Previous closing price: 232,000 won
- Rating: Buy (maintained)
Daishin Securities maintained its 500,000-won target price, saying Samsung Electronics Co., Ltd.’s shares are excessively undervalued relative to its earnings growth. Its assessment is that only the timing of the shareholder-returns announcement has been delayed, not the company’s commitment to strengthening returns, and that the shares are cheap given expected memory earnings growth.
Researcher Hyungkeun Ryu stressed, “The explosive increase in profits led by memory semiconductors continues to make the shares attractive, and the direction of strengthening the shareholder-returns policy has not changed,” adding, “The deeply undervalued share price should be seen as an opportunity to increase exposure.”
He went on to say that “shareholder returns are a matter of timing.” He expected the share buybacks and cancellations anticipated by the market to be focused mainly on preferred shares, with a total value of about 25 trillion won.
He also saw further room for memory prices to rise. Researcher Ryu said, “I maintain my view that mobile DRAM prices will rise by at least 30% quarter on quarter in the first quarter of next year,” and forecast that the average selling price of general-purpose DRAM next year could rise by the mid-to-high 40% range compared with this year.
With additional requests for HBM4 and HBM4e supplies continuing, some customers were also believed to be willing to pay next year’s contract prices in advance. Researcher Ryu forecast a 38% share by revenue, saying, “Next year will be a landmark year in which Samsung secures the top spot in HBM market share.”※ High-bandwidth memory (HBM)This is a high-performance memory semiconductor made by stacking multiple layers of DRAM vertically and connecting them with through-silicon vias (TSVs), greatly increasing data-processing speed. It is used in artificial intelligence (AI) accelerators that handle large volumes of computation, and HBM4 is the sixth-generation product.
◆ Hyundai Motor (005380)― NH Investment & Securities / Researcher Haneul
- Target price: 440,000 won (cut 18.5%, from 540,000 won) ᅵ Previous closing price: 292,500 won
- Rating: Buy (maintained)
NH Investment & Securities cut Hyundai Motor’s target price to 440,000 won, saying the lull in momentum from its new businesses is growing longer.
Researcher Haneul cut the earnings-per-share (EPS) forecast by 16.1%, reflecting a lower exchange-rate forecast for 2027 and a higher corporate tax rate. The analyst also reduced the valuation premium applied to Hyundai Motor relative to peer companies from 20% to 10%, reflecting the prolonged lull in momentum since the company announced its entry into new businesses such as robotics.
Researcher Haneul said, “A recovery in the multiple can only be expected once the scale of investment in new-business facilities is finalized and external customers are secured.”
That means the valuation multiple could rise again only once the investment scale for new businesses such as robotics and the external customers are clearly established.
Wholesale sales are expected to recover in the fourth quarter as production normalizes and new models take effect, but a weaker exchange rate is likely to weigh on profitability. Researcher Haneul said, “If the exchange rate in the fourth quarter remains at its current level, the impact on operating earnings is expected to be significant compared with the high average exchange rate of 1,450 won in the same period last year.”
◆ Doosan Enerbility (034020)― Meritz Securities / Researcher Moon Gyeong-won
- Target price: 109,000 won (cut 16.8%, from 131,000 won) ᅵ Previous closing price: 56,700 won
- Rating: Buy (maintained)
Meritz Securities cut its target price for Doosan Enerbility to 109,000 won but expects orders for nuclear power plants, SMRs and gas turbines to pick up in earnest from year-end.
Researcher Moon Gyeong-won said, “The share price has recently been weighed down by macroeconomic risks, including rising interest rates, a weaker exchange rate and falling approval ratings for U.S. President Donald Trump, but further downside is expected to be limited.”
In the large-scale nuclear power plant segment, orders for long-lead items (LLIs) from U.S.-based Westinghouse Electric Company are expected to increase. The contract signed the previous day with U.S.-based NuScale Power Corporation to manufacture one SMR module was interpreted as a sign that a power purchase agreement (PPA) between NuScale Power Corporation and the U.S. Tennessee Valley Authority (TVA) is imminent.
Researcher Moon said, “Order momentum is expected to concentrate at year-end and the start of next year, driving the share price higher.” The analysis suggests that a concentration of orders for large-scale nuclear power plants, SMRs and gas turbines could provide a catalyst for a share-price rebound.※ Small modular reactor (SMR)A small reactor whose major components are manufactured in modular form at a factory and assembled on site. It is cited as a potential power source for data centers because it takes less time to build than a large nuclear power plant and faces fewer site constraints.※ Long-lead item (LLI)These are key pieces of equipment, such as reactors and steam generators, that take a long time to manufacture and are ordered early in the construction of a nuclear power plant. Since they are often ordered before the main construction contract, they are considered a leading indicator of nuclear power plant orders.

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