[Click eStock] "Samsung Electronics, All Negative Factors Priced In... S25 Expected to Achieve Record Sales"

"Downside Risk Less Than 10%... Upside Potential Over 30%"

There is an analysis that Samsung Electronics' stock price has already reflected all negative factors. It is expected that the soon-to-be-released new smartphone, Galaxy S25, will achieve record-breaking sales, and DRAM supply and demand will improve starting in the second half of the year.

On the 21st, KB Securities stated that based on these factors, it maintains a target price of 70,000 won for Samsung Electronics and a 'Buy' investment rating.

First, it is expected that the sales volume of the Galaxy S25, to be unveiled on the 23rd, will reach 37 million units, a 6% increase compared to the same period last year. This is the highest sales volume in nine years since the Galaxy S7's 49 million units in 2016. This growth rate is more than twice the global smartphone shipment growth rate of 3% this year.

The AI features embedded in the Galaxy S25 have raised expectations as it moves beyond simple functions that only processed existing commands, by being the first to incorporate a conversational AI assistant based on a large language model (LLM), enabling interaction with users. Additionally, hardware functions have been significantly improved compared to the previous model, while thickness and weight have been reduced. Despite this, the price is estimated to increase slightly or remain stable.

Samsung Electronics' closing price the previous day was 53,400 won, down 32% over the past six months. The price-to-book ratio (PBR) is 0.9 times, which is at a historically low level. KB Securities forecasts that Samsung Electronics' operating profit will reach 33 trillion won this year, with performance expected to improve in the second half.

Dongwon Kim, a researcher at KB Securities, said, "In the first half of this year, the goal is to obtain production internal approval (PRA) for HBM3E 12-layer and HBM4, increasing the likelihood of approval for Nvidia's HBM products in the future." He added, "Accordingly, the upside potential of the current stock price is estimated to be over 30%, while the downside risk is less than 10%, indicating that negative factors have already been sufficiently reflected."