[Asia Economy Reporter Kwon Jaehee] Despite Samsung Electronics achieving record-breaking earnings in the first quarter of this year, its stock price has hit a 52-week low, leading to mixed outlooks. While some still advocate for the "100,000-won Samsung Electronics" target, several securities firms have been lowering their price targets. Nevertheless, individual investors view this as a buying opportunity and continue to accumulate shares.
According to Samsung Electronics' Q1 2022 earnings announcement on the 7th, the company posted sales of 77 trillion won and an operating profit of 14.1 trillion won. This represents increases of 17.76% and 50.32%, respectively, compared to the same period last year (sales of 65.39 trillion won and operating profit of 9.38 trillion won).
Despite this, Samsung Electronics closed at 68,000 won on the day, down 0.73% from the previous day, marking a 52-week low. On the following day, the 8th, it again hit a new low, closing at 67,800 won, down 0.29% from the previous trading day.
In response to this situation, some securities firms have lowered their price targets for Samsung Electronics. On the 8th, Hana Financial Investment cut its target price from 101,000 won to 95,000 won. KB Securities lowered theirs from 100,000 won to 90,000 won, and Hi Investment & Securities reduced theirs from 94,000 won to 89,000 won. Shinhan Financial Investment also cut its target from 105,000 won to 97,000 won, and Eugene Investment & Securities lowered theirs from 93,000 won to 88,000 won.
KB Securities analyst Kim Dongwon explained, "The reason for Samsung Electronics' weak stock performance since the beginning of the year is due to demand reduction in the upstream industry caused by macroeconomic uncertainties, raising doubts about whether memory semiconductor prices will continue to rebound in the second half of this year."
On the other hand, some securities firms still maintain a positive outlook for the "100,000-won Samsung Electronics." NH Investment & Securities and Daol Investment & Securities have kept their target prices at 105,000 won. Samsung Securities also maintained its target at 100,000 won.
NH Investment & Securities analyst Do Hyunwoo stated, "Due to solid demand centered on data centers and conservative investments in the semiconductor industry, the decline in memory semiconductor prices is considerably better compared to past downcycles," adding, "Profit margins are also healthy thanks to cost management efforts."
Individual investors have reportedly purchased nearly 9 trillion won worth of Samsung Electronics shares since the beginning of this year. According to the Korea Exchange on the 10th, from the first trading day of the year on January 3 to April 8, individuals net purchased common shares of Samsung Electronics worth a total of 8.118 trillion won. This is the highest net buying amount by individuals during this period.
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