Disclaimer: This article is for informational purposes only and does not constitute financial advice.
📌 Key Research Highlights
- Broker: Daishin Securities | Rating: Buy (Maintained)
- Target Price: 500,000 KRW (~$374.81 USD based on 1334 KRW/USD)
- Core Thesis: Explosive profit growth driven by memory semiconductors and a commitment to strengthening shareholder returns make the current valuation highly attractive for overweight strategies.
Investment Thesis and Target Price
Daishin Securities maintains a Buy rating and a 6-month Target Price of 500,000 KRW (~$374.81 USD). The analyst argues that the current stock price is absolutely undervalued, presenting a significant opportunity for investors to increase their weight. The valuation is supported by the expectation of explosive profit growth in the memory semiconductor division and the continued direction of strengthening shareholder return policies. Regarding shareholder returns, the analyst views the timing as the only remaining variable, predicting that share buybacks and cancellations—likely focused on preferred shares—could reach approximately 25 trillion KRW (~$18.74B USD), resulting in a Dividend Per Share (DPS) of 12,567 KRW (~$9.42 USD).
Earnings Estimates and Financial Preview
Despite a conservative exchange rate assumption of 1,300 KRW/USD for 2027, the analyst forecasts a massive surge in profitability:
- 2027 Memory Semiconductor Operating Profit: Estimated at 608 trillion KRW (~$455.77B USD).
- Overall Financial Forecasts:
- 2026F: Revenue of 720.6 trillion KRW (~$540.18B USD) and Operating Profit of 387.6 trillion KRW (~$290.55B USD).
- 2027F: Revenue of 971.4 trillion KRW (~$728.26B USD) and Operating Profit of 604.5 trillion KRW (~$453.15B USD).
- Valuation Multiples: The projected P/E ratio is expected to drop significantly from 16.6x in 2025A to 4.7x in 2026F and 3.0x in 2027F, highlighting the extreme undervaluation relative to earnings growth.
Key Semiconductor Drivers and Catalysts
The report identifies several critical catalysts for the memory business:
- DRAM Volume and Pricing: Samsung provided 4Q26 DRAM shipment guidance of mid-to-high teens growth Quarter-over-Quarter (QoQ) (estimated at +18%). For 2027, DRAM shipments are projected to rise 20% Year-over-Year (YoY). General-purpose DRAM ASPs could potentially rise by the mid-to-high 40% YoY in 2027.
- Technological Edge: Early yield improvements in 1c DRAM are expected to be deployed in general-purpose DRAM mass production, further boosting bit growth.
- High Bandwidth Memory (HBM): There is a reported surge in requests for HBM4 and HBM4e. The analyst expects Samsung to reclaim the top market share position by 2027, forecasting a revenue-based HBM market share of 38%.
- Customer Demand: Strong demand from Cloud Service Providers (CSPs) is noted, with some customers reportedly willing to prepay 2027 contract prices for early supply, signaling a recovery in product competitiveness.
🔗 Original Source: View the official filing/article here.