There is an outlook that Samsung Electronics' stock price could reach 270,000 won.
Daishin Securities said in a report on the 23rd that it is raising this year's operating profit forecast for Samsung Electronics to 201 trillion won from 171 trillion won and lifting its target price to 270,000 won from 240,000 won. The previous trading day's closing price of Samsung Electronics was 190,100 won.
Ryu Hyeong-geun, an analyst at Daishin Securities, cited the sharp rise in general-purpose memory prices, High Bandwidth Memory (HBM), and the strong performance of the memory semiconductor institutional sector as the basis for the upward revision.
Ryu said the average selling prices (ASP) of DRAM and NAND are expected to increase 154% and 89%, respectively, from a year earlier, adding that profit leverage in the general-purpose semiconductor institutional sector will expand significantly.
In particular, the technological competitiveness of next-generation HBM4 was seen to support further improvement in profitability. Ryu said, "HBM4 can achieve up to 11.7 Gbps in terms of I/O speed," and noted, "If market competition bifurcates around I/O speed, additional ASP gains can be expected based on its speed advantage."
Profitability in the memory institutional sector is also seen as likely to surpass the peak of the past supercycle. Ryu added, "A level exceeding the peak profitability during the 2017–2018 supercycle (DRAM 70%, NAND 53%) is expected." There are concerns about a slowdown in profitability in the finished goods business due to rising component prices, but the magnitude of earnings improvement in the semiconductor and display institutional sectors is expected to offset this and lead overall profitability higher.