"Samsung Electronics to Earn 1,022 Trillion Won in Two Years... Maintains 600,000 Won Target Price" [Click e-Stock]

KB Securities said on November 3 that Samsung Electronics is expected to post operating profit of KRW 1,022 trillion over the next two years (2026–2027), surpassing its cumulative operating profit over the 56 years since its founding and setting an all-time record. The brokerage maintained its target price of KRW 600,000 and its Buy rating.

In a report released that day, Kim Dong-won, head of research at KB Securities, said, "Reflecting the expansion of long-term memory supply agreements and rising average selling prices (ASPs), we raised our forecasts for next year's operating profit and net income by 15.3% and 13.3%, respectively, to KRW 640 trillion and KRW 508 trillion." He added, "The company's overwhelming earnings generation has made its earnings outlook much clearer."

Samsung Electronics is particularly expected to strengthen its competitiveness in high-bandwidth memory (HBM) and regain control over supply. Its global HBM market share rose from 21% in the first quarter of this year to 33% in the second quarter and 40% in the third quarter, approaching its DRAM market share. Kim said, "Samsung Electronics' HBM4 supply contracts for next year are understood to have been signed at the highest prices among the three DRAM manufacturers." He added, "The average selling price of Samsung Electronics' HBM is expected to rise 150% year over year."

The global memory shortage is expected to worsen. Kim noted, "This is because the expansion of HBM production capacity structurally constrains the supply of general-purpose DRAM." He added, "HBM production capacity is expected to account for 30% of global DRAM capacity next year, up from 18% last year, while the share of general-purpose DRAM is forecast to fall to 70% next year from 82% last year."

Kim said, "Next year, Samsung Electronics' operating profit will surpass Nvidia's, making it the highest among companies worldwide." He added, "Taking the top spot globally in operating profit is expected to mark a historic turning point in the reassessment of the company's value."

This content was produced with the assistance of AI translation services.