[Click e-Stock] "SAMT to Benefit from Rising DRAM Prices"

On December 9, Research Alarm predicted that SAMT would see increased profits due to rising memory semiconductor prices. Along with a positive outlook for the stock price, the firm set a target price of 21,000 won.

Choi Seonghwan, a researcher at Research Alarm, explained, "SAMT is the number one distributor of Samsung Electronics' CIS (CMOS Image Sensor) in Korea," adding, "The company not only has a simple distribution advantage, but also holds a strategic position directly connected to future growth industries."

He further introduced, "CIS is a core sensor for devices expected to see high growth, including smartphone cameras, autonomous vehicle ADAS cameras, security and surveillance systems, robots and drones, industrial machine vision, and medical and bio imaging equipment."

He analyzed, "SAMT maintains a certain level of inventory as a structural characteristic to ensure stable supply of both memory and non-memory semiconductors," and added, "Due to the nature of the distribution business, the rate of increase or decrease in inventory assets is a key leading indicator for future sales and profits."

He also emphasized, "During periods of rising memory prices, customer orders increase rapidly, prompting SAMT to proactively secure inventory," and noted, "This usually leads to improved performance one to two quarters later."

It is estimated that this year, SAMT will achieve sales of 3.95 trillion won and operating profit of 98 billion won. These figures represent increases of 36.9% and 45.4%, respectively, compared to last year.