Kiwoom Securities noted on the 22nd that a surprise in Samsung Electronics' third-quarter performance is expected. With the explosive growth of high bandwidth memory (HBM) and a significant reduction in the operating loss of the institutional sector, they forecast that this will alleviate the factors pushing the stock price down. They raised the target stock price from the previous 89,000 won to 90,000 won, maintaining an investment opinion of 'buy.'
Kiwoom Securities projected that Samsung Electronics' third-quarter performance estimates include sales of 82.6 trillion won and an operating profit of 9 trillion won. These figures represent increases of 11% and 93%, respectively, compared to the previous quarter, significantly surpassing existing market expectations (consensus). By institutional sector, the memory business is expected to lead an improvement in performance, as shipments of HBM increased by 107% compared to the previous quarter. In the non-memory sector, a significant reduction in operating loss is also expected as sales of the mobile processor Exynos 2500 and image sensor (CIS) increase.
HBM is expected to secure market share as the yield of the 10-nanometer (1cnm) process improves, along with advancements in post-processing and product performance. Particularly, the share within NVIDIA's next-generation GPU, Rubin, is likely to expand to 30%. In the institutional sector, a rebound in mid to long-term performance is anticipated as new customers are secured, including Tesla and Apple, along with Qualcomm.
Park Yu-ak, a researcher at Kiwoom Securities, said, "With expectations growing for a third-quarter performance rebound, additional securing of foundry customers, and an increase in NVIDIA's HBM market share, I believe the upward trend in stock prices will continue," adding that "the concerns stemming from a lackluster performance thus far will begin to shift to expectations."