Corporate Logo(source: samsung.com)
Mirae Asset Securities stated on May 7 that Samsung Electronics (005930) is expected to see a rebound in earnings starting in the second quarter of 2025. The brokerage maintained its "Buy" rating and target price of 80,000 won.
Analyst Kim Young-gun noted that “the semiconductor division likely bottomed out in the first quarter, driven by a decline in high-bandwidth memory (HBM) shipments and reduced utilization rates at its foundry operations.” He added, “Earnings are expected to recover from the second quarter, mitigating the negative impact from a slowdown in smartphone demand.”
Kim also highlighted that “conventional memory contract prices have surged by more than 20% due to preemptive buying triggered by concerns over tariffs stemming from recent actions by U.S. President Donald Trump.” While this spike is not rooted in fundamental demand recovery, he emphasized that the normalization of channel inventory is a positive development. However, he cautioned that it remains uncertain whether the current pricing strength will be sustained through the end of the year.
Mirae Asset Securities forecast Samsung Electronics’ second-quarter revenue and operating profit at 75.1 trillion won and 7.2 trillion won, respectively, representing quarter-on-quarter declines of 5% and 6.8%. By segment, the company is expected to post: 2.8 trillion won from Device eXperience (DX), 3.3 trillion won from Device Solutions (DS), 600 billion won from the Display (SDC) division, and 400 billion won from Harman.
“The current share price reflects a scenario that discounts the potential success of both HBM3E client qualification and 2nm foundry yield improvement,” Kim said. “However, we hold strong conviction that if even one of these milestones is achieved, the stock could quickly re-rate to normalized valuation levels.”
*[KOSPI]Samsung Electronics(005930) is the top company in the KOSPI, dominating the global market in semiconductors and smartphones. Its market capitalization is 321.43 trillion won (as of May 2, 2025, closing price).
Corporate Logo(source: samsung.com)
Mirae Asset Securities stated on May 7 that Samsung Electronics (005930) is expected to see a rebound in earnings starting in the second quarter of 2025. The brokerage maintained its "Buy" rating and target price of 80,000 won.
Analyst Kim Young-gun noted that “the semiconductor division likely bottomed out in the first quarter, driven by a decline in high-bandwidth memory (HBM) shipments and reduced utilization rates at its foundry operations.” He added, “Earnings are expected to recover from the second quarter, mitigating the negative impact from a slowdown in smartphone demand.”
Kim also highlighted that “conventional memory contract prices have surged by more than 20% due to preemptive buying triggered by concerns over tariffs stemming from recent actions by U.S. President Donald Trump.” While this spike is not rooted in fundamental demand recovery, he emphasized that the normalization of channel inventory is a positive development. However, he cautioned that it remains uncertain whether the current pricing strength will be sustained through the end of the year.
Mirae Asset Securities forecast Samsung Electronics’ second-quarter revenue and operating profit at 75.1 trillion won and 7.2 trillion won, respectively, representing quarter-on-quarter declines of 5% and 6.8%. By segment, the company is expected to post: 2.8 trillion won from Device eXperience (DX), 3.3 trillion won from Device Solutions (DS), 600 billion won from the Display (SDC) division, and 400 billion won from Harman.
“The current share price reflects a scenario that discounts the potential success of both HBM3E client qualification and 2nm foundry yield improvement,” Kim said. “However, we hold strong conviction that if even one of these milestones is achieved, the stock could quickly re-rate to normalized valuation levels.”
*[KOSPI]Samsung Electronics(005930) is the top company in the KOSPI, dominating the global market in semiconductors and smartphones. Its market capitalization is 321.43 trillion won (as of May 2, 2025, closing price).