Disclaimer: This article is for informational purposes only and does not constitute financial advice.
📌 Key Research Highlights
- Broker: IBK Securities | Rating: Buy (Maintained)
- Target Price: 460,000 KRW (~$345 USD based on 1333 KRW/USD)
- Core Thesis: Stronger-than-expected memory performance, driven by HBM mix improvement and mobile pricing, is offsetting currency weakness and losses in non-memory and consumer electronics divisions.
Investment Thesis and Target Price
IBK Securities maintains a Buy rating and a Target Price of 460,000 KRW (~$345 USD based on 1333 KRW/USD). The analyst views the stock as being in a state of significant undervaluation. The bullish outlook is supported by the expanding scale of AI-related investments, stronger binding force in contract executions, and a continuing trend of operating profit margin improvement. Additionally, the analyst expects the 3Q dividend (to be finalized in late October) and potential further shareholder returns to act as positive catalysts for the stock price.
Earnings Estimates and Financial Preview
For the 3Q26 preliminary results, Samsung Electronics reported Revenue of 195 trillion KRW (~$146.3B USD) and Operating Profit of 107.4 trillion KRW (~$80.6B USD), with operating profit exceeding previous forecasts.
Divisional Performance Analysis:
- DS (Device Solutions) & Display: Performed better than previous estimates. The DS division’s 3Q26E operating profit is estimated at 108.4 trillion KRW (~$81.3B USD), a massive YoY increase of 1,451.3%.
- MX (Mobile eXperience) & VD/Consumer Electronics: Underperformed estimates as losses widened. MX/Network 3Q26E operating profit is estimated at -1.9 trillion KRW (~$1.4B USD), and VD/Consumer Electronics at -719 billion KRW (~$539M USD).
Annual Forecasts (2026F):
- Revenue: 701.6 trillion KRW (~$526.3B USD)
- Operating Profit: 368.3 trillion KRW (~$276.3B USD)
- Operating Profit Margin: Projected to reach 52.5% in 2026F, rising to 59.8% in 2027F and 64.4% in 2028F.
Key Semiconductor Drivers and Catalysts
The memory boom is exceeding market expectations. While 2Q price movements were limited due to Long-Term Agreements (LTA), 3Q performance was bolstered by a higher proportion of High Bandwidth Memory (HBM) and stronger pricing momentum in the mobile sector.
Memory Specifics:
- DRAM: 3Q26E ASP is estimated to increase by 21.0% QoQ.
- NAND Flash: The analyst revised estimates downward as volumes were lower than expected and prices declined more than previously forecasted (3Q26E ASP revised to 20% vs previous 22%).
- Non-Memory: Losses were larger than expected because utilization rates have not yet fully recovered despite new orders.
🔗 Original Source: View the official filing/article here.