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Samsung Electronics, which has been sideways for more than two months(85,400 +0.71%) Stock prices are showing signs of a rebound. This is due to the fact that DRAM prices, which influence Samsung Electronics’ earnings, have entered a full-fledged upward trend. Securities companies predict that Samsung Electronics will be able to exceed 100,000 won within this year.
On the 5th, Samsung Electronics closed the transaction at 85,400 won, up 0.71%. This is the first time since January 27 that Samsung Electronics’ stock price has exceeded 85,000 won based on the closing price. The stock price, which had been sideways in the low 80,000 won range for more than two months, showed signs of rising. Another favorable condition for the rebound is that the 20-day moving average line, which represents a short-term trend, falls below the 60-day moving average line, which is the mid-term trend line. This is because the dead cross that occurred amid the earnings improvement trend can be read at the buying timing.
Expectations for a share price rebound are expected to improve in 2Q09. The DRAM and NAND divisions are expected to see a dramatic increase in earnings. According to Kiwoom Securities, DRAM fixed prices in the second quarter are expected to rise by an average of 17% QoQ due to the surge in mobile and server demand. In 1Q, operating profits in the semiconductor process design and foundry divisions plummeted due to the impact of the Austin plant shutdown. It is showing a recovery trend from 2Q.
As a result of this, Samsung Electronics’ 2Q operating profit consensus was 9,864.5 billion won, up 21.0% from the same period last year. It is increasing rapidly from 9,654.3 billion won a month ago. Park Yoo-ak, a researcher at Kiwoom Securities, explained, “Samsung Electronics’ 12-month leading stock price net asset ratio (PBR) is currently 2.0x, and the stock price can rise rapidly to 2.3x, the highest historical level.”
In the securities industry, earnings improvement is not expected to stop in the quarter. This is because there is a continuing shortage of semiconductors around the world. Kim Dong-won, a researcher at KB Securities, explained, “Just looking at the DRAM market, the price rise will continue for at least one year because supply is in an absolute shortage.”
This is the basis for securities firms to keep raising their target price for Samsung Electronics. The average target price suggested by 23 securities companies was 106,000 won, which surged from 3 months ago (88,000 won). Except for one of 17 securities companies that have released target prices in the past month, all have target prices of over KRW 100,000. Shinhan Investment Corp. is the highest at 120,000 won.
Reporter Go Yoon-sang [email protected]
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