Brokerage : Yuanta Securities
Analyst : Gilhyun Baik, Seokmin Lim
Investment Rating : BUY (Maintained)
Target Price : KRW 340,000 (Upgraded)
Core Momentum : Upward target price revision driven by peak memory pricing momentum with 2Q26 operating profit projected at KRW 86.8T, supported by anticipated 2027 earnings visibility from advanced-node foundry order wins after 1H26.
📊 1. [Valuation & Key Financial Metrics]
- Rating & Target Price: BUY maintained; Target Price raised to KRW 340,000 from KRW 330,000 (54% upside potential based on April 30, 2026 closing price of KRW 220,500)
- Target Price Methodology: Derived by applying a Target PBR of 2.22x to 2027E BPS
- Key Financial Metrics & Forecasts (K-IFRS Consolidated, 2023A ~ 2026F):
- 2023A: Revenue KRW 258.94T, OP KRW 6.57T, Net Profit (Controlling) KRW 14.47T, PER 30.3x, PBR 1.3x, EV/EBITDA 8.4x, ROE 4.1%
- 2024A: Revenue KRW 300.87T, OP KRW 32.73T, Net Profit (Controlling) KRW 33.62T, PER 13.2x, PBR 1.2x, EV/EBITDA 5.2x, ROE 9.0%
- 2025A: Revenue KRW 333.61T, OP KRW 43.60T, Net Profit (Controlling) KRW 44.26T, PER 9.9x, PBR 1.1x, EV/EBITDA 4.2x, ROE 10.8%
- 2026F: Revenue KRW 718.55T, OP KRW 357.52T, Net Profit (Controlling) KRW 270.08T, PER 4.8x, PBR 2.1x, EV/EBITDA 2.7x, ROE 48.1%
🚀 2. [Market Opportunities & Business Outlook]
- 1Q26P Earnings Review:
- Revenue KRW 133.90T (+68.1% YoY, +41.7% QoQ, +11.7% vs. consensus)
- Operating Profit KRW 57.21T (+756.2% YoY, +185.1% QoQ, +42.4% vs. consensus, OPM 43.0%)
- Net Profit (Controlling) KRW 43.33T (+440.0% YoY, +124.7% QoQ, +21.0% vs. consensus)
- 2Q26 Earnings Forecasts:
- Consolidated Revenue projected at KRW 174.4T (+133.9% YoY, +30.2% QoQ) and Operating Profit at KRW 86.8T (OPM 49.7%, +1755.2% YoY, +51.8% QoQ), significantly beating consensus (KRW 155.2T / KRW 78.9T)
- Semiconductor Division: Revenue KRW 118.1T (+313.1% YoY, +44.5% QoQ) and Operating Profit KRW 84.7T (OPM 71.7%, +21931.6% YoY, +56.8% QoQ)
- Memory Division: Operating profit projected at KRW 85.4T (OPM 76.9%, +2515.2% YoY, +56.0% QoQ), assuming sequential price increases of +40% for DRAM and +40% for NAND
- Non-Memory Division: Operating loss expected to narrow to KRW 0.7T on recovering foundry utilization
- Non-Semiconductor Segments: Revenue KRW 55.9T (+4.5% YoY, -11.1% QoQ) and Operating Profit KRW 2.6T (OPM 4.6%, -41.2% YoY, -29.0% QoQ); Mobile OP projected at KRW 1.5T (OPM 5.0%, -51.5% YoY, -46.2% QoQ) reflecting component cost pressures
- Sentiment & Catalysts:
- Recent share price underperformance relative to global peers due to labor strike concerns and HBM4 supply worries is expected to reverse on solid memory pricing and post-1H26 advanced-node foundry contract expansion
📝 Editor’s Comment (Perspective)
The analyst views Samsung Electronics as an integrated semiconductor powerhouse whose temporary valuation discount—triggered by labor disputes and HBM4 supply friction—is overshadowed by extraordinary memory pricing power (+40% QoQ in DRAM/NAND) and improving advanced-node foundry prospects. This perspective places decisive weight on the sheer magnitude of 2Q26 semiconductor operating profit (KRW 84.7T) overcoming non-semiconductor cost pressures, alongside 2027 forward earnings visibility underpinned by advanced fab order wins.
To determine whether this investment thesis holds true over time, key verification checkpoints include the realization of KRW 86.8T in 2Q26 operating profit backed by +40% QoQ memory price realization, the continued narrowing of quarterly non-memory fab losses, and the formal execution of advanced-node foundry client contracts expected beyond 1H26. These developments can be tracked through upcoming quarterly earnings releases, official IR presentations, and regulatory filings on DART/KRX.
📢 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)
