Samsung Electronics is on the rise, supported by buying pressure from foreigners and institutions, despite forecasts that its first-quarter operating profit will fall short of consensus.
As of 11:05 AM, Samsung Electronics is trading at 64,000 KRW, up 1.27% (800 KRW) from the previous day. At this time, foreigners and institutions are net buying 2.24 billion KRW and 22.73 billion KRW worth of shares, respectively.
On this day, Kim Unho, a researcher at IBK Investment & Securities, stated, "Samsung Electronics' first-quarter operating profit is expected to decrease by 94% compared to the previous quarter, to 257 billion KRW," adding, "A significant operating loss is anticipated in the semiconductor (DS) division."
Researcher Kim forecasted that Samsung Electronics' semiconductor division losses will continue. He diagnosed, "Due to a sharp price decline in the first quarter, both DRAM and NAND flash will turn to operating losses," and "Profitability will worsen due to inventory asset valuation losses."
Researcher Kim evaluated that while a rebound in DRAM prices is unlikely, the recognition of the industry bottom is spreading positively due to competitors' conservative investments and earnings forecasts.
He predicted, "DRAM price declines will significantly slow from the second quarter of this year, and Samsung Electronics' volume reduction will also be a positive factor," adding, "Performance is expected to improve in the second half of this year."
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