[Click eStock] "Samsung Electronics, Strong Semiconductor and Mobile Performance... Target Price Up"

[Asia Economy Reporter Song Hwajeong] Daishin Securities on the 20th forecasted that Samsung Electronics' semiconductor and mobile business divisions will show strong performance and raised the target stock price from 100,000 KRW to 120,000 KRW. The investment opinion was maintained as 'Buy.'

Researcher Lee Subin of Daishin Securities explained, "We raised Samsung Electronics' operating profit for next year to 58.5 trillion KRW, a 10% increase compared to the previous year, and also raised the target stock price," adding, "An upcycle in DRAM memory semiconductors is expected next year, and further improvement in foundry performance is anticipated."

Daishin Securities estimated Samsung Electronics' operating profit for the fourth quarter of this year at 15.2 trillion KRW. By business division, semiconductors are expected to generate 9.6 trillion KRW, displays 1.5 trillion KRW, IT & Mobile (IM) 3.1 trillion KRW, consumer electronics (CE) 800 billion KRW, and Harman 100 billion KRW. Researcher Lee analyzed, "The price decline in memory semiconductors in the fourth quarter is expected to be limited compared to previous estimates, and DRAM semiconductor prices are expected to enter an upcycle in the third quarter of next year," adding, "Non-memory semiconductors are expected to see the foundry business division's operating profit margin expand to the mid-teens percentage, with foundry selling price increases and 5-nanometer sales reflected."

IM is expected to see increased sales volume compared to the previous quarter as the parts shortage situation improves. Next year, performance improvement exceeding market growth rates is also expected. Displays are expected to maintain solid performance of mobile OLED panels through the peak season until the fourth quarter. However, costs for large panels are expected to increase due to Quantum Dot (QD) display panel production. Next year, shipments of rigid OLED panels for IT devices and foldable panels for external customers are expected to increase. CE is expected to see expanded sales compared to the previous quarter due to the year-end peak season. Despite cost increases, profitability is expected to remain stable through product modularization and design optimization.