Disclaimer: This article is for informational purposes only and does not constitute financial advice.
📌 Key Research Highlights
- Broker: DS Investment & Securities | Rating: Buy | Target Price: 530,000 KRW (~$397.60 USD)
- Core Thesis: Historic milestone achieved with DRAM quarterly revenue exceeding 100 trillion KRW, driven by strong ASP momentum and recovering HBM competitiveness.
- 3Q26 Performance: Preliminary operating profit of 107.4 trillion KRW (~$80.6B USD), beating DS Investment’s estimates and aligning with market consensus.
- Key Catalyst: Rapid recovery in High Bandwidth Memory (HBM) competitiveness, with 3Q26 HBM revenue estimated to double compared to 2Q26.
Investment Thesis and Target Price
DS Investment & Securities maintains a Buy rating and a Target Price of 530,000 KRW (~$397.60 USD). The analyst highlights a significant milestone as DRAM revenue is estimated to have surpassed 100 trillion KRW (~$75B USD) in a single quarter for the first time. A key driver for the positive outlook is the strategic focus on expanding HBM4 shipments in 3Q26 without aggressively increasing shipment volume (B/G), which creates strong anticipation for 4Q26 earnings. The company’s competitiveness in the HBM market is recovering rapidly, with 3Q26 HBM revenue estimated to be double that of 2Q26.
Earnings Estimates and Financial Preview
For 3Q26, preliminary results show revenue of 195 trillion KRW (~$146.4B USD, +14% QoQ) and operating profit of 107.4 trillion KRW (~$80.6B USD, +20% QoQ), representing an Operating Profit Margin (OPM) of 55%. This exceeded the broker’s estimate of 104 trillion KRW (~$78.1B USD) and met the revised consensus of 106.7 trillion KRW (~$80.1B USD).
Divisional Operating Profit Breakdown (Estimated):
- DS (Device Solutions): 107.6 trillion KRW (~$80.8B USD)
- DX (Device Experience): -1.6 trillion KRW (~$1.2B USD)
- SDC (Samsung Display): 1.1 trillion KRW (~$825M USD)
- Harman: 0.3 trillion KRW (~$225M USD)
DS Division Detailed Estimates:
- DRAM: Operating Profit of 83.8 trillion KRW (~$63B USD) with an OPM of 83%. Estimated B/G increased by 4% and ASP increased by 19% QoQ.
- NAND Flash: Operating Profit of 25.7 trillion KRW (~$19.3B USD) with an OPM of 64%. Estimated B/G increased by 4% and ASP increased by 13% QoQ.
- LSI/Foundry: Operating loss of 1.9 trillion KRW (~$1.4B USD), though the deficit narrowed compared to the previous quarter.
Key Semiconductor Drivers and Catalysts
- HBM Momentum: The rapid recovery of HBM competitiveness is a primary catalyst. The shift toward HBM4 shipment expansion is expected to drive significant value in the coming quarters.
- DRAM & NAND Pricing: Strong ASP growth in both DRAM (+19%) and NAND Flash (+13%) continues to drive record-breaking profitability in the DS division.
- Display Strength: SDC recorded solid performance (1.1 trillion KRW / ~$825M USD) due to increased shipments to North American customers and resilient pricing.
- DX Mix Improvement: While the DX division faced cost pressures, the MX (Mobile) business saw a reduction in losses due to strong sales of new foldable phones, improving the product mix despite sluggish mid-to-low-end series sales.
🔗 Original Source: View the official filing/article here.