reports
- Kazunori Ito
Market Worries About Price Decline of Memories, Rich Dividends Will Su...
Samsung Electronics' operating income for the June quarter was KRW 14.9 trillion, which was below our forecast of KRW 15.4 trillion. Despite the price decline on NAND flash memories, Samsung's operating margin for the device solutions segment reached a historical high of 42.2%, slightly above the previous quarter of 41.5%, which was driven by the robust DRAM demand. Demand for servers remained strong, and content growth for smartphones also supported the growth, which we believe will continue in...
- Kazunori Ito
While DRAM Demand Remained Tight, Samsung Missed our Forecast Because ...
Samsung Electronics disclosed its preliminary result for the June quarter, which was below our forecast by 4% on revenue and 5% on operating income. While the company does not disclose the breakdown at this point, we believe the sluggish smartphone sales is the main reason of the shortfall. We estimate that NAND price continued to decline, as the improvement on 3D NAND production enabled larger output, while demand growth was limited. Meanwhile, we believe solid demand from servers contributed t...
- Kazunori Ito
Samsung's earnings appear to be rebounding on the back of cost cuts an...
We are transferring the coverage of Samsung Electronics to a new analyst and raising our moat rating to narrow from no-moat, as we identify a substantial cost advantage on Samsung’s memory business, which is derived from its leading position. Accordingly, we revise our fair value estimate to KRW 56,000 per share and USD 1,300 per GDR from KRW 50,000 and USD 1,200, respectively, and believe that current prices are slightly undervalued. While increasing data traffic requires larger capacity to m...
- Kazunori Ito
Transferring Coverage of Samsung Electronics and Upgrading to narrow m...
We are transferring the coverage of Samsung Electronics to a new analyst and raising our moat rating to narrow from no-moat, as we identify a substantial cost advantage on Samsung’s memory business, which is derived from its leading position. Accordingly, we revise our fair value estimate to KRW 56,000 per share and USD 1,300 per GDR from KRW 50,000 and USD 1,200, respectively, and believe that current prices are slightly undervalued. While increasing data traffic requires larger capacity to m...
- Dan Baker
Strong Memory Demand and Galaxy S9 Contribute to Samsung Record Quarte...
Samsung Electronics’ operating income for the March quarter was KRW 15.6 trillion, which is a historical high, owing to the robust memory demand and the launch of its flagship smartphone. Samsung’s operating margin reached 25.8%, up 2.8% on quarter-on-quarter basis, driven by the 3.8% margin expansion on mobile and 4.0% expansion on semiconductors. While preliminary numbers were already disclosed on April 6, we consider that Samsung’s 2018 outlook on memory, which expects a solid demand fr...
- Dan Baker
Another Memory-Driven Record Quarter for Samsung
Samsung has again announced very strong quarterly guidance for first-quarter 2018, with revenue up around 19% to around KRW 60 trillion and operating profit up around 22% to around KRW 15.6 trillion. The quarterly operating profit will be a record high for Samsung, driven by a very favorable memory market. We retain our fair value estimate of KRW 2.5 million per share and our GDR valuation of USD 1,200 per GDR. We also retain our no-moat rating with low switching costs for Samsung’s key smartp...
- Dan Baker
Memory Drives Record 4Q for Samsung. Upcoming Stock Split a Positive
Samsung has again announced very strong quarterly results for fourth-quarter 2017 with revenue up 24% to KRW 66 trillion and operating profit up 58% to KRW 15.2 trillion. Quarterly revenue and operating profit were both record highs for Samsung driven by a very favorable memory market. The company announced a 50 for 1 stock split which we expect to increase liquidity in the stock and open Samsung share investment up to a wide investor audience. Given a single Samsung share currently trades for t...
- Dan Baker
Memory Drives Record 4Q for Samsung; DRAM Prices to Rise, NAND May Fal...
Samsung has again announced very strong quarterly earnings guidance for operating profit to rise 58% year on year and 4% sequentially to approximately KRW 15.1 trillion for the fourth quarter. Revenue of around KRW 66 billion would also be up 24% year on year. Quarterly revenue and operating profit would both be record highs for Samsung. This guidance offered no other details apart from revenue and operating profit, and we retain our fair value estimate of KRW 2.5 million per share but increase ...
- Dan Baker
Memory Market Drives Another Record in 3Q for Samsung
Samsung has again announced very strong quarterly earnings guidance for operating profit to rise 179% year on year and 3% sequentially to approximately KRW 14.5 trillion for the third quarter. Revenue of around KRW 62.1 billion would also be up 30% year on year. The third-quarter 2016 was depressed by the Note 7 battery issues which boosts year-on-year growth rates but quarterly revenue, operating profit and operating profit margin of 23.4% in third-quarter 2017 would all be record highs for Sam...
- Dan Baker
Samsung's earnings appear to be rebounding on the back of cost cuts an...
We are initiating on Samsung Electronics’ Global Depository Receipt, or GDR, which trades on the London Stock Exchange in U.S. dollars; each GDR represents 0.5 of a Samsung ordinary share. We make no other changes to our forecasts. We retain our fair value estimate of KRW 2.5 million on the ordinary shares and initiate with a GDR fair value of $1,100. We also retain our no-moat rating with low switching costs for Samsung’s key smartphone products, as the company competes on hardware, which c...
- Dan Baker
Initiating Coverage of Samsung’s GDR, With Memory Continuing to Boom...
We are initiating on Samsung Electronics’ Global Depository Receipt, or GDR, which trades on the London Stock Exchange in U.S. dollars; each GDR represents 0.5 of a Samsung ordinary share. We make no other changes to our forecasts. We retain our fair value estimate of KRW 2.5 million on the ordinary shares and initiate with a GDR fair value of $1,100. We also retain our no-moat rating with low switching costs for Samsung’s key smartphone products, as the company competes on hardware, which c...
- Dan Baker
Samsung's earnings appear to be rebounding on the back of cost cuts an...
Samsung Electronics has been a fantastic growth story as it established itself as the clear global leader in the smartphone space during the past six years. It is also the leading manufacturer of memory in an industry that is experiencing very high demand from mobile devices and the Big Data trend, and that will likely benefit from artificial intelligence demand in the future.Despite these strengths, challenges loom. Unlike competitor Apple, Samsung Electronics doesn't benefit from an economic m...
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