Refer Report
Securities companies have lowered their target stock prices one after another, citing uncertainty surrounding the delivery of Samsung Electronics’ 5th generation high bandwidth memory (HBM3E). Securities companies predicted that it would be difficult for stock prices to rise in the short term.
On the 1st, Korea Investment & Securities lowered Samsung Electronics’ target stock price from 96,000 won to 83,000 won, and in relation to the company’s statement that it would prepare additional 5th generation improved high-bandwidth memory products, it said, “Internal certification and new samples are subject to change.” “As customer certification work is required, the mass production schedule will be delayed and sales plans will inevitably be revised,” he said. “In memory, the expansion of high-bandwidth memory sales will be delayed compared to competitors, and the recovery in foundry demand will be slower than expected.” “With the delay, we believe it will be difficult to have performance expectations for the time being,” he said.
Many domestic securities firms lowered their target stock price while maintaining their ‘buy’ opinion on Samsung Electronics. The common reason cited was that there was still uncertainty regarding the delivery of 5th generation high-bandwidth memory to Nvidia, a major customer.
Hanwha Investment & Securities lowered the target stock price from 95,000 won to 90,000 won and said, “The main reason for the negative growth in operating profit is the reflection of one-time costs in the semiconductor (DS) sector,” but even excluding this, it was a “disappointing performance.” “We expect the memory industry to enter a slowdown phase next year, with demand growth slowing while supply growth expands compared to this year.” “As we expect the momentum for general-purpose memory price growth to slow significantly, we believe it will be important to narrow the gap with competitors in the high-bandwidth memory market,” he added. He went on to say, “It is too early to make optimistic judgments as there is still a gap with competitors in the market entry point for next-generation products such as 12-layer products and HBM4,” and added that while the risk of further downside is limited, it is difficult for the trend to rise in a short period of time.
According to Samsung Electronics’ announcement on the 31st, the previous day, sales in the third quarter of this year (July to September) were KRW 79 trillion, up 6.8% from the previous quarter, but operating profit was KRW 9.2 trillion, below market expectations (KRW 10.8 trillion). fell below In particular, the semiconductor division recorded sales of 29.27 trillion won and operating profit of 3.86 trillion won. Although sales increased by 2.5% from the previous quarter, operating profit plummeted by 40.2%.
Shinhan Investment & Securities also lowered its target stock price from 95,000 won to 90,000 won. They said, “The news that the 5th generation high-bandwidth memory passed the 8-layer test is positive, but the timing of 12-layer supply is delayed compared to competitors,” and “expectations for short-term performance have lowered.” “We need to take a long-term approach,” he said. In addition, short-term concerns such as the slower-than-expected PC and mobile industry recovery, slowing demand for old memory, and sluggish non-memory were cited as reasons for the stock price downgrade.
Daishin Securities lowered its target stock price by 15% to 85,000 won and said, “The start of supply through improved 5th generation high-bandwidth memory products is a very positive factor, but we believe that future order volume and supply timeline will be important.” did it Daol Investment & Securities lowered its target stock price from 110,000 won to 93,000 won, and Kyobo Securities lowered its target stock price from 110,000 won to 93,000 won.
On this day, Samsung Electronics started trading at 59,000 won, down 0.34% from the previous day (59,200 won), and as of 1 p.m., it is moving sideways in the upper 58,000 won range.
Reporter Noh Ji-won zone@hani.co.kr
Source: Korean