Brokerage : Hana Securities
Analyst : Rok-ho Kim
Investment Rating : BUY (Maintained)
Target Price : KRW 480,000 (Maintained)
Core Momentum : Ample room for further earnings revisions driven by persistent memory supply shortages, rising LPDDR demand from Nvidia, and upward pricing potential for 2027 HBM contracts
📊 1. [Valuation & Key Financial Metrics]
- Trading & Valuation Metrics
- Current Price (as of 2026-07-07): KRW 296,000
- Target Price (12M): KRW 480,000 (Maintained)
- Investment Rating: BUY (Maintained)
- Market Capitalization: KRW 1,730.50 Trillion (KRW 1,730,498.5 Billion)
- 2026F PER / PBR / EV/EBITDA: 6.67x / 2.80x / 4.18x
- 2027F PER / PBR / EV/EBITDA: 4.58x / 1.94x / 2.48x
- 2026F ROE / 2027F ROE: 54.49% / 50.74%
- 2026F BPS / 2027F BPS: KRW 113,610 / KRW 163,909
- 2026F DPS / 2027F DPS: KRW 14,850 / KRW 22,038
- Annual Financial Outlook (Financial Data, Consolidated K-IFRS)
- 2024A: Revenue KRW 300.87T, Operating Profit KRW 32.73T, Net Profit KRW 33.62T (EPS KRW 4,950)
- 2025A: Revenue KRW 333.61T, Operating Profit KRW 43.60T, Net Profit KRW 44.26T (EPS KRW 6,564)
- 2026F: Revenue KRW 750.29T, Operating Profit KRW 391.64T, Net Profit KRW 317.83T (EPS KRW 47,646)
- 2027F: Revenue KRW 948.37T, Operating Profit KRW 572.98T, Net Profit KRW 461.45T (EPS KRW 69,405)
- Market Consensus Data
- 2026F: Revenue KRW 726.62T, Operating Profit KRW 372.76T, Net Profit KRW 308.25T
- 2027F: Revenue KRW 927.22T, Operating Profit KRW 523.84T, Net Profit KRW 427.97T
🚀 2. [Market Opportunities & Business Outlook]
- 2Q26 Earnings Review (Adjusted Beat)
- 2Q26 preliminary revenue reached KRW 171 Trillion (+129% YoY, +28% QoQ) and operating profit came in at KRW 89.4 Trillion (+1,810% YoY, +56% QoQ).
- Considering over KRW 16 Trillion in performance bonus provisions reflected through 1Q, normalized operating profit effectively surpassed KRW 100 Trillion.
- Segment operating profit breakdown: Memory KRW 91T, System Semiconductor KRW -2T, Display KRW 0.3T, MX/NW at BEP, VD/DA KRW -0.2T, and Harman KRW 0.3T.
- System Semiconductor losses expanded to KRW -2 Trillion due to bonus provisions, Display sustained solid earnings via North American customer demand, and MX operated around break-even levels due to higher component raw material costs.
- Catalysts for 2H26 and 2027 Upward Forecast Revisions
- Persistent Memory Shortage: Stronger-than-expected memory pricing is anticipated to continue into 2H26 amidst ongoing supply constraints.
- LPDDR Demand Driven by Nvidia: Even as Chinese smartphone OEMs lower production volume targets, robust LPDDR procurement from Nvidia for standalone Vera CPU sales and Vera Rubin shipments is expected to offset this, sustaining tight supply conditions.
- 2027 HBM Price Upward Adjustments: In light of rising commodity DRAM prices, capacity trade-offs, and yield dynamics, higher contract pricing for HBM is deemed achievable, with customer negotiations actively underway.
📝 Editor’s Comment (Perspective)
The analyst views Samsung Electronics primarily as a structurally robust memory leader with substantial room for upward earnings revisions through 2027, which outweighs temporary margin compression in set segments and non-memory cost burdens. This perspective underscores the company’s leverage in capitalizing on persistent memory shortages, driven by strong LPDDR procurement from next-generation AI compute platforms and favorable pricing renegotiations for 2027 HBM contracts.
To evaluate whether this investment thesis unfolds as anticipated, key tracking points include actual delivery volumes of LPDDR to Nvidia in 2H26, the final outcome of 2027 HBM contract pricing negotiations with major clients, and the normalization of System Semiconductor operating profit following one-off bonus expenses. These factors can be verified through upcoming quarterly earnings releases, official company IR presentations, and regulatory filings (DART).
📢 Disclaimer & Source
Source: This content has been structured and newly written based on officially disclosed financial facts and data from brokerage reports.
Investment Risk Notice: This content is provided for informational and linguistic reference purposes only. Under no circumstances does it constitute financial advice or a recommendation to buy or sell any specific securities. All investment decisions and financial responsibilities rest entirely with the investor.
Contact: Compliance and Copyright Inquiries (ksb220805@gmail.com)
