Disclaimer: This article is for informational purposes only and does not constitute financial advice.
Investment Thesis and Target Price
Mirae Asset Securities maintains a Buy investment rating and a Target Price of 370,000 KRW (~$267.34 USD based on 1384 KRW/USD) for Samsung Electronics. The brokerage notes that the stock has overreacted to macro uncertainties despite record-level shareholder returns. Currently, the 12-month forward P/B and P/E multiples stand at 1.7x and 4.3x, respectively, returning to levels seen before the AI cycle. The valuation is supported by a significant shareholder return plan of 90–110 trillion KRW (~$65.03B – $79.48B USD) for 2026, with approximately 30 trillion KRW (~$21.68B USD) in cash dividends to be paid in 3Q26. Based on the previous closing price, the maximum 2026 dividend yield is estimated at 8.3% for common stock and 11.0% for preferred stock.
Earnings Estimates and Financial Preview
The brokerage maintains its operating profit estimates for 3Q26F at 119.8 trillion KRW (~$86.56B USD), 4Q26F at 126.0 trillion KRW (~$91.04B USD), and full-year 2027F at 558.9 trillion KRW (~$403.83B USD). For the full year 2026F, the operating profit is estimated at 392,521 billion KRW (~$283.62B USD), slightly above the market consensus of 392,345 billion KRW (~$283.56B USD). Revenue for 2026F is projected at 737.7 trillion KRW (~$533.02B USD), increasing to 979.3 trillion KRW (~$707.66B USD) in 2027F. The report highlights that over half of the revenue is secured through Long-Term Agreements (LTAs), reducing overall earnings volatility.
Key Semiconductor Drivers and Outlook
DRAM supply and demand are expected to remain tight through 2028. Driven by High Bandwidth Memory (HBM) price increases, DRAM ASPs are projected to rise by +15% in 3Q26F, +5% in 4Q26F, and +22% in 2027F. Field research in China indicates surging AI infrastructure demand, shifting from government subsidies to actual demand from CSPs and AI model developers. While Chinese HBM self-sufficiency is lower than expected (with HBM3-level autonomy estimated in about two years), the impact of CXMT’s production expansion on overall DRAM oversupply is judged to be limited due to HBM’s high capacity consumption (nearly 4x). Furthermore, Samsung’s ‘zHBM’ technology, which stacks memory directly on the XPU without an interposer, is expected to reduce power consumption by approximately 70%, positioning the company for a valuation re-rating through its integrated capabilities in memory, advanced foundry, and packaging.
🔗 Original Source: View the official filing/article here.