Samsung Electronics recorded sales of 23.61 trillion won and operating profit of 35.99 trillion won on an annual basis last year. This is an increase of 2.8% and 29.6%, respectively, compared to the previous year, which is favorable considering the US-China trade conflict and management uncertainty such as Corona 19 last year. Sales reached 240 trillion won, recorded during the semiconductor super boom from 2017 to 2018, and operating profit was the fourth highest ever.
On the 28th, Samsung Electronics announced that it recorded 61 trillion won in sales and 9.5 trillion won in operating profit on a consolidated basis in the fourth quarter of last year. Compared to the same period of the previous year, sales increased by 2.8% and operating profit increased by 26.35%. The flagship semiconductor, which recorded annual sales of 103 trillion won, played a supporting role, and TV and home appliances made good results, contributing to good performance.
■’Strut’ semiconductor seeks growth engine out of corona this year
In the fourth quarter of last year, the semiconductor recorded 18 trillion KRW in sales and KRW 3.85 trillion in operating profit.
In the memory business, demand was solid as the mobile market showed strong growth in 4Q and the data center and PC markets were also healthy. However, it is interpreted that profits have weakened due to continued price declines, a weak dollar and the initial cost of new lines.
In 4Q, DRAM demand showed solid demand thanks to the recovery of smartphone sales, expansion of data center investments, strong PC demand, and the launch of new GPUs. Demand for NAND was solid in mobile and consumer SSDs, but demand for servers showed a slight weakening in 4Q10 due to increased data center purchases in the first half.
In the first quarter of this year, overall demand for memory is expected to improve thanks to the expansion of the mobile market due to the launch of various new products, increasing demand for data center purchases, and increasing demand for notebooks for non-face-to-face activities. However, earnings are expected to weaken QoQ due to the weak dollar and the initial cost of new lines.
This year, it is expected to gradually escape from the effects of Corona 19 and find a growth engine. The market is expected to recover due to the launch of new 5G products and increased demand by major smartphone makers, and plans to expand the supply centered on 5G SoCs and sensors to promote double-digit growth in sales of the division.
The foundry business recorded the largest quarterly sales in the fourth quarter as demand for 5G mobile chips, sensors, and HPC chips increased, but earnings declined due to the weak dollar. However, Samsung Electronics has proven its cutting-edge process competitiveness by completing the design of the 5 nano 2nd and 4 nano 1st mobile products in a timely manner.
In the first quarter of this year, demand for all processes is strong and the supply shortage problem is expected to persist for the time being. This year, the foundry market is expected to continue to grow thanks to the acceleration of 5G penetration and strong demand for HPC.
■ Display achieves quarterly peak performance
In the display business, sales recorded 9,960 billion won and operating profit of 1.75 trillion won in the fourth quarter. The company achieved the highest quarterly earnings due to recovery in demand for major products such as smartphones and TVs.
For small and medium-sized displays, performance improved sharply QoQ due to strong demand from major customers. For large-sized displays, TV and monitor panel demand continued due to the expansion of non-face-to-face services, and the average panel sales price rose, reducing the QoQ loss.
In the first quarter of this year, the small and medium-sized display business is expected to decline QoQ due to a decrease in demand from major customers, but the utilization rate is expected to improve compared to the same period last year as the number of OLED adoption models by major customers increases.
In this year’s small and medium-sized display business, OLED panel demand is expected to increase due to the full expansion of the 5G smartphone market and the recovery of smartphone demand.
■’Galaxy S21′ early appearance…Expected to increase sales and profits this year
In the fourth quarter, the IM division recorded sales of 22.34 trillion won and operating profit of 2.4 trillion won. In the wireless business, sales and profits decreased QoQ as competition intensified at the end of the year and marketing expenses increased.
In the network business, performance improved from the previous quarter by responding to the domestic 5G expansion and expanding 4G and 5G businesses in overseas markets such as North America.
In the first quarter of this year, both sales and profits are expected to increase QoQ due to the expansion of flagship sales and the increase in average selling prices following the early launch of the Galaxy S21, and the launch of new mid- to low-end models.
As the 5G market expands in earnest along with a gradual economic recovery this year, market demand is expected to recover to the level before Corona 19.
■ TV·home appliance, increasing demand due to the’pent-up’ effect
The CE division recorded sales of 13.61 trillion won and operating profit of 820 billion won in the fourth quarter. The TV market in the fourth quarter expanded QoQ due to strong demand for pent-ups centered on advanced markets during the peak season at the end of the year. The consumer electronics market also saw a slight increase in demand as economic activity in emerging markets gradually resumed.
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The TV market in the first quarter of this year is seasonally off-demand, and demand declines QoQ, but growth is expected from the same period last year. Global home appliance demand is expected to grow year-on-year, and Samsung Electronics plans to continue its growth by releasing innovative premium new products and strengthening online marketing activities.
This year’s TV market is expected to be highly volatile due to the impact of Corona 19, but the overall market is expected to be the same as the previous year. The home appliance market is expected to grow YoY due to continued demand for pent-ups centered on advanced markets.