Brokerage : Kyobo Securities
Analyst : Boyoung Choi
Investment Rating : Buy (Maintained)
Target Price : KRW 500,000 (Maintained)
Core Momentum : Extended industry visibility supported by 5-year LTAs and long supply lead times, with simultaneous HBM4 market share gains and conventional DRAM shortages enhancing earnings sustainability
📊 1. [Valuation & Key Financial Metrics]
- Stock & Valuation Indicators
- Current Price (as of 2026-07-30): KRW 207,000
- Target Price: KRW 500,000
- Investment Rating: Buy (Maintained)
- 2026E P/E: 3.4x
- 2026E P/B: 1.8x
- Market Capitalization: KRW 1,331.34 Trillion
- Key Financial Forecasts (K-IFRS Consolidated)
- 2024: Revenue KRW 300.87 Trillion, Operating Profit KRW 32.73 Trillion (OPM 10.9%), Net Profit KRW 34.45 Trillion, EPS KRW 5,433
- 2025: Revenue KRW 333.61 Trillion, Operating Profit KRW 43.60 Trillion (OPM 13.1%), Net Profit KRW 45.21 Trillion, EPS KRW 7,241
- 2026(E): Revenue KRW 732.91 Trillion, Operating Profit KRW 383.33 Trillion (OPM 52.3%), Net Profit KRW 361.88 Trillion, EPS KRW 60,367
- 2027(E): Revenue KRW 966.31 Trillion, Operating Profit KRW 528.45 Trillion (OPM 54.7%), Net Profit KRW 506.70 Trillion, EPS KRW 84,628
- 2028(E): Revenue KRW 1,017.86 Trillion, Operating Profit KRW 526.32 Trillion (OPM 51.7%), Net Profit KRW 518.70 Trillion, EPS KRW 86,637
🚀 2. [Market Opportunities & Business Outlook]
- 2Q26 Earnings Review & Segment Breakdown
- Consolidated Q2 Revenue stood at KRW 171.5 Trillion (+28% QoQ, +130% YoY); Operating Profit reached KRW 89.5 Trillion (+56% QoQ, +1,812% YoY, OPM 52.1%)
- DS (Device Solutions): Revenue KRW 127.5 Trillion, Operating Profit KRW 89.2 Trillion (Memory Revenue KRW 120.8 Trillion, +62% QoQ)
- DRAM: Bit Growth +8%, ASP +49% QoQ (+370% YoY)
- NAND: Bit Growth +3%, ASP +58% QoQ (+323% YoY)
- DX (Device eXperience): Revenue KRW 48.0 Trillion, Operating Loss KRW 0.8 Trillion (impacted by component cost pressures despite sales expansion)
- SDC / Harman: SDC Operating Profit KRW 0.7 Trillion; Harman Operating Profit KRW 0.4 Trillion
- Industry Visibility & Medium-Term Drivers
- Extended earnings visibility backed by long lead times for new capacity additions and 5-year LTAs with global data center clients
- Rapid expansion in HBM4 revenue contribution alongside yield and utilization rate improvements in leading-edge foundry nodes
- Concurrent dynamics of HBM4 market share expansion and conventional DRAM supply shortages enhancing profit longevity relative to prior up-cycles
📝 Editor’s Comment (Perspective)
The analyst views Samsung Electronics’ strong results not as a short-term cyclical peak, but as an indicator of extended earnings visibility and sustained profitability driven by 5-year data center LTAs and long lead times for new supply additions. Rather than focusing on peak-out concerns, this perspective places greater weight on the likelihood of prolonged earnings durability compared to previous memory cycles, supported by simultaneous HBM4 market share expansion and conventional DRAM supply tightness.
To verify whether this investment thesis holds going forward, key tracking points include whether 5-year LTAs with global data center clients provide stable revenue defensibility, whether HBM4 revenue rapidly scales in mix as projected, and whether leading-edge foundry operations demonstrate tangible yield and utilization gains. These developments can be monitored through upcoming quarterly earnings releases, official IR presentations, and periodic regulatory filings.
📢 Disclaimer & Source
Source: This content has been structured and newly written based on officially disclosed financial facts and data from brokerage reports.
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