Hana Securities said on the 13th that Samsung SDS is the most suitable investment destination if one wants to invest in the growth of the domestic artificial intelligence (AI) cloud market. It kept its "Buy" rating and raised the target price to 220,000 won from 190,000 won. The previous trading day's closing price of Samsung SDS was 169,500 won.
Lee Jun-ho, an analyst at Hana Securities, said, "Demand for private cloud migration and cloud dualization is increasing, and the advent of the AI agent era is expected to accelerate this," adding, "Samsung SDS has built an AI agent full-stack ecosystem (AI infrastructure, platform, app, agent services) with domestic and overseas partners, and we expect strong benefits from industry growth."
He added, "This year, orders in the public and financial sectors are continuing, and starting next year, we expect to confirm increased network usage and profit leverage due to the full-scale use of AI services by existing and new clients," saying, "it is the most suitable investment destination if one wants to invest in the growth of the domestic AI cloud market."
Samsung SDS on the 1st became the first in Korea to sign a reseller partnership with OpenAI and plans to provide ChatGPT Enterprise services to domestic corporations.
The analyst said, "Including the captive market (Samsung Group affiliates), supplying ChatGPT Enterprise services across domestic corporations can secure additional revenue that did not exist before," adding, "Samsung SDS will also participate as the design, build, operate (DBO) contractor for OpenAI's domestic Stargate."
Hana Securities estimated that Samsung SDS will post revenue of 3.5036 trillion won and operating profit of 235.8 billion won in the third quarter (July–September) this year. They are expected to decrease 1.9% and 6.7%, respectively, from a year earlier, in line with market consensus.