Samsung Electronics raises this year's operating profit outlook again… target price of 48ten-thousand won maintained

Samsung Electronics' operating profit forecast for this year has been raised again, drawing investor attention. The key point is that rising memory prices lifted the earnings outlook.

iM Securities on 3 day raised Samsung Electronics' operating profit forecast for this year's 2·4quarter from the previous 76trillion 1,000hundred million won to 80trillion won. On the same day, it also raised its annual operating profit forecast from the previous 340trillion won to 360trillion won.

iM Securities maintained its 'Buy' rating and target price of 48ten-thousand won. The analyst cited rising prices for DRAM and NAND as the basis.

Song Myung-seop, a researcher at iM Securities, said he estimates that the average selling price (ASP) of DRAM rose by more than40%, while NAND flash ASP rose by60% in the mid-single digits. He went on to forecast that in the3quarter and the4quarter, DRAM and NAND ASPs, respectively, are highly likely to rise by an additional15~20%.

Samsung Electronics’ share price has recently undergone a short-term correction. Analysts have expressed the view that favorable conditions in the memory market are highly likely to continue through2027.

The disclosure is drawing market attention because it is a case in which memory price trends are directly reflected in Samsung Electronics’ earnings outlook. The related calculations and assumptions are based on the researcher’s estimates.