KB Securities maintained its target price for Samsung Electronics at 90,000 won and designated it as the top preferred stock in the semiconductor sector. This is based on the expectation that its estimated operating profit in the second half will reach the highest level in four years.
On the 21st, KB Securities projected that Samsung Electronics' operating profit for the second half of this year would increase by 14.8% year-on-year to 18 trillion won. This is the highest figure since the second half of 2021 (29.6 trillion won).
Kim Dong-won, a researcher at KB Securities, noted, "The improvement in the performance of semiconductor (DS), smartphone (MX), and display (DP) segments is exceeding expectations," adding, "In particular, an improvement in quarterly results is expected starting from the third quarter."
KB Securities specifically estimated that Samsung Electronics' quarterly operating profit, which remained at 4.7 trillion won in the second quarter, would improve to 8.88 trillion won in the third quarter and 9.2 trillion won in the fourth quarter.
Researcher Kim stated, "Samsung Electronics has also laid the foundation for a turnaround in its foundry business, which recorded losses for three years," noting that "the new order worth 23 trillion won from Tesla is a representative example."
The U.S. Department of Commerce's review of equity acquisition by Samsung Electronics is also considered a positive factor. Foreign news outlets, including Reuters, reported recently that the U.S. Department of Commerce is examining the acquisition of equity by manufacturers receiving subsidies under the Semiconductor Support Act (CHIPS Act).
Researcher Kim remarked, "The review of Samsung Electronics' equity acquisition by the U.S. Department of Commerce could serve as a catalyst for strengthening ties with the U.S. government," adding, "There is also the potential to secure new customers among U.S. big tech companies."