Brokerage : Daishin Securities
Analyst : Hyungkeun Ryu
Investment Rating : BUY (Maintained)
Target Price : KRW 560,000 (Maintained)
Core Momentum : Memory profit leverage via strategic pricing and enforceable LTAs, enhanced early foundry breakeven visibility from the Broadcom collaboration and 2nm progress, and anticipated updates to shareholder return policies
📊 1. [Valuation & Key Financial Metrics]
- Stock & Valuation Indicators
- Current Price (as of 2026-07-30): KRW 207,000
- 6-Month Target Price: KRW 560,000
- Investment Rating: BUY (Maintained)
- Market Capitalization: KRW 1,331.33 Trillion
- 2026(F) Forward P/E: 7.6x, P/B: 1.9x, ROE: 52.2%
- 2027(F) Forward P/E: 5.6x, P/B: 1.3x, ROE: 45.3%
- Key Financial Forecasts (K-IFRS Consolidated)
- 2024: Revenue KRW 300.87 Trillion, Operating Profit KRW 32.73 Trillion, Net Profit (Controlling) KRW 33.62 Trillion, EPS KRW 4,950
- 2025: Revenue KRW 333.61 Trillion, Operating Profit KRW 43.60 Trillion, Net Profit (Controlling) KRW 44.26 Trillion, EPS KRW 6,564
- 2026(F): Revenue KRW 722.47 Trillion, Operating Profit KRW 381.23 Trillion (OPM 52.8%), Net Profit (Controlling) KRW 298.00 Trillion, EPS KRW 45,172
- 2027(F): Revenue KRW 941.54 Trillion, Operating Profit KRW 534.48 Trillion (OPM 56.8%), Net Profit (Controlling) KRW 399.87 Trillion, EPS KRW 60,814
🚀 2. [Market Opportunities & Business Outlook]
- Memory Division: Strategic Pricing & LTA Structuring
- Maintained high margins (estimated OPM: DRAM +78%, NAND +70%) driven by strategic pricing despite roughly KRW 17 Trillion in bonus provisions
- Expanding enforceable LTAs incorporating Rolling Base options and 20–30% prepayments
- Finalizing contracts with approximately 10 key clients, targeting an LTA proportion of 60–70% of total manufacturing capacity
- Logic & Foundry Division: Turnaround Visibility
- Announced USD 200 Billion semiconductor partnership with Broadcom (HBM Base Die, Controller, etc.), expected to accelerate leading-edge fab utilization
- Active 2nm orders (CPU, ASIC, telecom chips) and cost reductions improve visibility toward reaching foundry operating breakeven during 3Q26–4Q26
- Shareholder Return Outlook & Other Segments
- With the conclusion of the 3-year shareholder return policy based on 50% of FCF, upcoming policy updates are expected to potentially utilize a combination of share buybacks/cancellations and special dividends
- Set divisions focus on cost control and market share defense, alongside strategic development of the robotics business
📝 Editor’s Comment (Perspective)
The analyst evaluates Samsung Electronics as a business strengthening fundamental earnings power through strategic pricing, enforceable LTAs, and the potential early breakeven of its foundry division supported by leading-edge fab utilization gains from the Broadcom collaboration and 2nm customer wins. Rather than focusing on cyclical market overreactions, this perspective places greater weight on non-memory operational improvements and the potential for corporate value recovery upon the official unveiling of updated shareholder return policies.
To verify whether this investment thesis holds going forward, key tracking points include whether 20–30% prepayment LTAs covering 60–70% of total Capa are successfully finalized across roughly 10 clients, whether the foundry segment reaches operating breakeven during 3Q–4Q 2026 supported by the Broadcom collaboration, leading-edge fab utilization recovery, and 2nm order progress, and how the upcoming shareholder return policy is formally structured and executed. These developments can be monitored through upcoming quarterly earnings releases, official IR presentations, and periodic regulatory filings.
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