Samsung Electronics developed a high-capacity 512GB CXL DRAM for the first time in the industry and accelerated the commercialization of next-generation memory.  (provided by Samsung Electronics)
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Samsung Electronics also expects its highest performance in the second quarter… Maintaining 85,000 won in KB increase “memory demand increase” target

Samsung Electronics developed a high-capacity 512GB CXL DRAM for the first time in the industry and accelerated the commercialization of next-generation memory. (provided by Samsung Electronics)

KB Securities said on the 12th that Samsung Electronics is expected to see a positive trend in memory prices in the second quarter and evaluated its earnings to be good. Accordingly, we maintained our investment rating of ‘Buy’ and a target price of 85,000 won.

Kim Dong-won, a researcher at KB Securities, said about Samsung Electronics, “The second quarter’s earnings will be good thanks to solid demand for memory from data center companies that account for more than a third of Samsung Electronics’ DRAM sales.” As expected (DRAM -2% QoQ, NAND +5% QoQ), Samsung Electronics’ quarterly earnings this year will continue to increase until the third quarter,” he predicted.

Samsung Electronics is expected to generate 78.3 trillion won in sales and 15.1 trillion won in operating profit in the second quarter of 2022 on a consolidated basis. This is an increase of 22.9% in sales and 20.3% in operating profit compared to the same period of the previous year, with an operating profit margin of 19.3%. Compared to the first quarter of this year, it is estimated that sales and operating profit will increase by 0.6% and 7.1%. This means that the company will continue its record-high quarterly performance in the second quarter following the first quarter.

DRAM prices are expected to fall 2% QoQ in the second quarter, but NAND flash prices are expected to rise 5%. Samsung Electronics reduced the proportion of mobile DRAM sales by Chinese smartphone makers, which are experiencing prolonged sluggish demand, to less than half compared to 2021, and at the same time significantly increased the proportion of Apple and Samsung Electronics’ wireless division (MX) sales to reduce the impact of future declines in smartphone shipments in China. because it was prepared.

KB Securities predicted that Samsung Electronics will continue its earnings growth until the third quarter due to increased facility investment by the four largest data center companies in North America. Researcher Kim said, “Samsung Electronics’ sluggishness has been due to uncertainty in semiconductor demand in the second half of the year due to macro (macro-economic) issues such as China’s blockade, inflation, and Russia’s crisis. It must be secured,” he explained.

“However, Samsung Electronics is expected to pursue a strategy centered on profitability rather than increasing market share through a change in the management of its semiconductor business for the time being, so the future earnings improvement trend is highly likely to exceed market expectations,” said Kim. A reduction is expected,” he added.

As of 2:20 pm on the 12th, Samsung Electronics’ stock price is trading at 65,200 won, down 0.91% from the previous day.

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Reference-www.mk.co.kr

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