Disclaimer: This article is for informational purposes only and does not constitute financial advice.
Investment Thesis and Target Price
Hyundai Motor Securities maintains a Buy investment rating for Samsung Electronics with a 6-month Target Price of 440,000 KRW (~$3,086 USD based on 1426 KRW/USD). This valuation is derived from the arithmetic mean of a 10x projected 2026 P/E and a 3x projected 2026 P/B. The brokerage suggests a ‘Buy & Hold’ strategy, citing strong earnings momentum and the potential for expanded shareholder return policies.
Earnings Estimates and Financial Preview
For Q2, Samsung Electronics recorded confirmed revenue of 171.5 trillion KRW (~$120.3B USD), a 28.1% increase QoQ, and an operating profit of 89.5 trillion KRW (~$62.8B USD). The DS division was the primary driver, contributing 89.2 trillion KRW (~$62.6B USD) to the operating profit. For Q3, the brokerage has revised its revenue and operating profit estimates upward by 2.3% and 4.1% respectively, to 209 trillion KRW (~$146.6B USD) and 114 trillion KRW (~$79.9B USD). Annual projections for 2026F estimate revenue of 739.7 trillion KRW (~$518.7B USD) and operating profit of 388.6 trillion KRW (~$272.5B USD).
Key Semiconductor Drivers and Outlook
The primary catalyst is the expected expansion of High Bandwidth Memory (HBM) market share, with HBM4 expected to contribute significantly to revenue starting in Q3. Revenue growth is anticipated through increased supply to major accelerator companies such as NVIDIA and AMD. Consequently, the QoQ DRAM ASP growth forecast for Q3 has been raised to +20.1%. Despite market concerns regarding AIDC Capex reductions by North American CSPs, the brokerage views the current cycle more positively than the 2017-2018 Cloud Cycle due to a diversifying demand base, including Neo Cloud providers and LLM companies investing directly in AIDC, alongside long-term agreements (LTAs) with CSPs.
🔗 Original Source: View the official filing/article here.