“90,000 won Gazua”… Rosy outlook Samsung Electronics

Input 2020.12.28 10:02

Amid strong stock prices, brokerage companies’ target stocks are continuously raised
“DRAM semiconductor prices will increase next year, and profits will improve”
“The stock price has already risen a lot on the expectation of improving the industry”

Major securities companies have recently Samsung Electronics (005930)The stock price outlook is raising to 90,000 won. This month, nine securities companies raised their target prices for Samsung Electronics to 90,000 won. Some securities companies have suggested target prices up to KRW 95,000. The main reason for the prediction of ‘90,000 electronics’ is that the price of DRAM semiconductors, Samsung Electronics’ flagship export product, will rise sharply from next year.

Samsung Electronics is also the most popular stock for conservative individual investors. There are a lot of people who steadily collect Samsung Electronics, saying, “Unless our country is destroyed, Samsung Electronics will not be delisted. Some of the individual investors are buying more despite the recent surge in Samsung Electronics’ stock price.

According to the financial investment industry on the 28th, 9 places that raised the target price of Samsung Electronics to 90,000 won in December. DB Financial Investment (016610)Wow Daishin Securities (003540), Cape Investment & Securities offered 95,000 won. This is the highest target price out of nine. KB Securities, Hanwha Investment & Securities (003530)Offered 92,000 won Kiwoom Securities (039490), NH Investment & Securities (005940), Heungkuk Securities, and Shinhan Investment Corp. are expected to rise to 90,000 won.

Securities companies expect Samsung Electronics’ share price to rise because DRAM prices are expected to rise in earnest from next year. Samsung Electronics is a company that benefits from various fields such as home appliances and smartphones, but its core business is DRAM semiconductors. According to Samsung Electronics, of the total operating profit of 27 trillion won last year, the operating profit of the semiconductor division reached 1,420 trillion won, 50.4%. Until this year, semiconductor prices (average selling unit price, ASP) remained down, but prices are expected to rise from next year.

According to F&Guide, a financial information company, the average (consensus) of Samsung Electronics’ operating profit for next year is expected to rise 26.2% from this year to 46,560 billion won.

Kim Young Gun Mirae Asset Daewoo (006800)The researcher said, “Before the third quarter of next year, it is unlikely that the rise in DRAM prices will decline, so the stock price will steadily rise to the right until the second quarter.”

Investors who bet on Samsung Electronics’ share price rise are individual investors called ants. According to the Korea Exchange, individuals net bought 4,343,500 shares (2,8387 billion won) in the last one month (November 24-December 24). Among the stocks listed on the securities market during this period, Samsung Electronics is the stock with the largest individual net purchase.

Lee Mo (33), an individual investor, said, “Samsung Electronics’ stock price continues to rise to the point that it is said that today is the cheapest. Shinmo (40, male), an office worker with 350 shares, said, “I don’t know if the stock price can rise to 90,000 won, but we are investing from a very long-term perspective.” “We plan to keep it rather than realizing it because it has increased slightly.”

Foreigners and institutions have been selling Samsung Electronics in the last month. Foreigners sold 31.93,200 shares (2,2585 billion KRW), and institutions net sold 905,6200 shares (625.29 billion KRW). Both foreigners and institutions net sold Samsung Electronics the most among the stocks listed on the stock market.

Pyeon Deukhyun NH Investment & Securities (005940)The deputy chief said, “Selling Samsung Electronics by foreigners and institutions seems to be a move to reduce the burden of excessive rise in the Korean market.”

Contrary to expectations of individual investors and the securities industry, there is also a prospect that Samsung Electronics’ stock price may be adjusted. A senior official in the financial investment industry said, “Korea’s most competitive industry is semiconductors, and stock prices are reacting very quickly because of the expectation of future industry improvement, but there is a side that leads them too quickly compared to semiconductor price trends.” He also said, “When the time comes when semiconductor prices rise in earnest, stock prices are likely to either sideways or adjust. However, even if the adjustment phase comes soon, it will be after the first quarter of next year.”