Brokerage : IBK Investment & Securities
Analyst : Unoki Kim
Investment Rating : BUY (Maintained)
Target Price : KRW 460,000 (Maintained)
Core Momentum : Record quarterly operating profit expansion led by the DS division, supported by persistent memory supply shortages through 2028, data center LTAs, and the 3Q ramp of HBM4
📊 1. [Valuation & Key Financial Metrics]
- Stock & Valuation Indicators
- Current Price (as of 2026-07-30): KRW 207,000
- Target Price: KRW 460,000
- Investment Rating: BUY (Maintained)
- Target Price Methodology: Applied 4.2x PBR to 2026E BPS of KRW 111,437
- Market Capitalization: KRW 1,331.34 Trillion (6,648,650,000 shares outstanding)
- 2026(F) Forward P/E: 4.3x, P/B: 1.9x, ROE: 55.2%
- 2027(F) Forward P/E: 2.8x, P/B: 1.1x, ROE: 50.7%
- 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 731.96 Trillion, Operating Profit KRW 394.89 Trillion (OPM 54.0%), Net Profit (Controlling) KRW 321.39 Trillion, EPS KRW 48,182
- 2027(F): Revenue KRW 972.12 Trillion, Operating Profit KRW 598.55 Trillion (OPM 61.6%), Net Profit (Controlling) KRW 492.20 Trillion, EPS KRW 74,031
- 2028(F): Revenue KRW 1,195.07 Trillion, Operating Profit KRW 784.01 Trillion (OPM 65.6%), Net Profit (Controlling) KRW 653.25 Trillion, EPS KRW 98,253
🚀 2. [Market Opportunities & Business Outlook]
- Divisional Performance & Supply-Demand Conditions
- DS (Device Solutions) division is projected to continuously break historical quarterly profit records, leading consolidated earnings
- Display earnings contribution expected below 1%, while MX and VD/Home Appliances remain in operating loss territory
- Supply additions are expected to lag behind demand growth, extending tight memory supply conditions through 2028
- LTA Framework & HBM4 Competitiveness
- Distinct competitive positioning established via high-impact LTAs focused on Datacenter Big 5 and 5 additional pure-play AI server customers
- Strong competitive position in HBM4 regarding shipment timeline and allocated volume compared to peers
- HBM4 volume shipments starting in Q3 2026 are expected to contribute to top-line and earnings improvement
📝 Editor’s Comment (Perspective)
The analyst evaluates Samsung Electronics as a business set to continuously renew all-time record quarterly earnings driven by its DS division, supported by memory supply shortages persisting through 2028 and the expanding role of memory within the AI ecosystem. Rather than focusing on ongoing operational losses in the MX and consumer electronics segments, this perspective places greater weight on high-impact LTAs prioritized for Datacenter Big 5 and pure-play AI server clients, alongside earnings improvement from the HBM4 ramp starting in Q3.
To verify whether this investment thesis holds going forward, key tracking points include whether commercial HBM4 volume shipments starting in Q3 translate into sequential earnings improvement in the DS division, whether LTAs with the Datacenter Big 5 and the five pure-play AI server customers are successfully finalized and executed, and whether supply tightness through 2028 continues to support full-year earnings forecasts. 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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