Source Fact: Hyundai Motor Securities / Issued 2026.06.29
Investment Opinion & Target Price: BUY / 440,000 KRW
Key Momentum: Re-rating based on overwhelming profit contribution from the memory semiconductor division and expected benefits from the expansion of Agentic AI
📊 1. [Valuation Metrics and Investment Indicators Analysis]
- Maintain ‘BUY’ rating and target price of 440,000 KRW.
- Valuation calculated based on 2026 estimated P/E of 10.5x and P/B of 3x.
- Given that the memory semiconductor division accounts for 97% of this year’s total operating profit, the company requires market evaluation comparable to a ‘Memory Semiconductor Pure Player’ rather than a general home appliance/semiconductor firm.
- In the short term, operating profit is expected to reach 81.3 trillion KRW, 12.2% lower than previous estimates, due to the one-off reflection of performance-based bonus provisions in Q2 that were not reflected in Q1.
🚀 2. [Market Opportunity (TAM) and Detailed Performance Estimates]
- Improved Profitability in Memory Semiconductor Industry: Confirmed profit growth across the global memory sector, with Micron’s operating margin exceeding 80% and Kioxia’s forecast at 74.3%.
- DRAM Supply/Demand: Stable supply and demand expected until the second half of 2028 due to continued supply constraints despite Greenfield investments.
- Strengthening Enterprise Division: Despite concerns over the delay of OpenAI’s IPO, the proportion of enterprise-related revenue is expected to rise to 50% by year-end.
- Financial Estimates (2026F):
- Revenue: 753,566 hundred million KRW
- Operating Profit: 357,641 hundred million KRW
- EPS: 52,330 KRW
- ROE: 53.8%
📝 Editor’s Comment (by K-STOCK Editor)
Although Samsung Electronics’ Q2 operating profit is expected to fall short of market consensus due to temporary cost adjustments, this should be interpreted as a normalization process of accounting costs rather than a deterioration of structural fundamentals. Considering the transition to a ‘Pure Player’ structure where 97% of operating profit is generated from memory semiconductors, it is rational to apply a valuation differentiated from the company’s past home appliance business model. While there is ongoing debate regarding the peak of the memory cycle, the scenario of a sharp price decline—as seen in the past—is unlikely to recur given the currently reinforced LTA (Long Term Agreements).
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