Samsung Electronics reported its fourth-quarter earnings for the previous year, which fell short of market expectations for October through December, but global investment bank Morgan Stanley evaluated that this was already reflected in the stock price.
Morgan Stanley noted this in a report on the 8th. The firm maintained its investment opinion of 'overweight' on Samsung Electronics and set a target price of 65,000 won.
Samsung Electronics announced that it provisionally recorded consolidated sales of 75 trillion won and operating profit of 6.5 trillion won for the fourth quarter of the previous year before the market opened that day. This was below the market's estimated sales of 77 trillion won and operating profit of 7.8 trillion won.
Morgan Stanley viewed that the decline in profits in the institutional sector of Samsung Electronics' memory division was due to a decrease in shipments and a drop in the average selling price (ASP). It assessed that the costs of research and development (R&D) test wafers and initial operating expenses of the Pyeongtaek Plant 4 (P4) also acted as burdens.
Morgan Stanley further estimated that the institutional sector of Samsung Electronics recorded losses of more than 2 trillion won due to low utilization rates in foundry and system LSI.
Morgan Stanley stated, 'We have entered a downturn in the semiconductor industry,' but added, 'The fourth-quarter results of Samsung Electronics have already been reflected in the stock price using past data.' It then noted that 'the short-term performance outlook is in a state of reduced risk.'
Samsung Electronics' stock price showed a downward trend at the beginning of the day but rebounded later, recording 57,300 won as of 2:18 p.m. This is 3.43% (1,900 won) higher than the previous day.