logo

HomeArticlesServicePriceAbout

logo
article
박재훈투영인 프로필 사진박재훈투영인
"₩120,000 Samsung?"—Brokerages Cheer Surprise Earnings (Jul 13, 2024)
created At: 3/15/2025
Sell
Sell
This analysis includes a sell recommendation. Please carefully review all mentioned risk before proceeding.
103
0
0
Fact
9 brokerages raised Samsung’s target price. Kiwoom Securities: ₩110,000 → ₩120,000. Samsung Q2 earnings: Revenue: ₩74 trillion (+23.31% YoY) Operating profit: ₩10.4 trillion (+1,452% YoY, 25% above consensus) LG Electronics Q2 earnings: ₩1.2 trillion operating profit (+61.2% YoY).
Opinion
This earnings recovery needs deeper scrutiny. Samsung’s profitability boost came mainly from ASP hikes, raising concerns about its sustainability. More importantly, Samsung’s weakness in HBM and AI chips remains a long-term challenge. Brokerage upgrades may be overly focused on short-term numbers, overlooking structural competitiveness issues.
Core Sell Point
The optimistic outlook based on short-term earnings masks structural challenges, particularly in HBM and AI chips. This could lead to future downward revisions once the market refocuses on long-term competitiveness.

This week, brokerages turned bullish on Samsung Electronics, driven by a strong Q2 earnings beat and expectations of a memory market recovery.

In contrast, battery stocks like LG Energy Solution and Samsung SDI faced target price cuts due to weak EV demand in Europe. Retail and gaming sectors also received pessimistic outlooks.

Between July 8–12 (10 AM KST), analysts raised target prices for 153 stocks while lowering them for 104.

Samsung Electronics: Target Price Upgrades

Samsung was the main focus for brokerage firms this week, with 9 firms raising their target prices. Some even revived hopes of "₩120,000 Samsung."

  • Kiwoom Securities: ₩110,000 → ₩120,000

Samsung’s Q2 earnings significantly exceeded expectations:

  • Revenue: ₩74 trillion (+23.31% YoY)

  • Operating profit: ₩10.4 trillion (+1,452% YoY, 25% above consensus ₩8.3 trillion)

What Drove the Earnings Surprise?

  1. Memory Price Increases → Higher ASP (Average Selling Price) drove profitability.

  2. OLED Shipments Surge → Increased adoption in tablet displays.

  3. Foldable Smartphone Early Launch → Boosted display division earnings.

  • Chae Min-sook (Korea Investment & Securities):

    • "The earnings beat was driven by price increases rather than volume growth in memory."

Sustained Recovery or Temporary Boost?

While Samsung lags in AI-related semiconductors, some analysts remain optimistic:

  • Lee Min-hee (BNK Securities):

    • "Samsung has been slow to compete in HBM and AI chips, limiting its exposure to the AI boom."

    • "However, the general memory market recovery and non-memory profit improvements are driving a steady rise in earnings."

LG Electronics: Another Earnings Surprise

LG Electronics also reported a strong Q2 performance, attracting positive revisions:

  • NH Investment & Securities:

    • Target price raised from ₩130,000 → ₩150,000.

    • Q2 operating profit: ₩1.2 trillion (+61.2% YoY, above ₩1 trillion consensus).

  • Key driver: Improved home appliance profitability.

    • Market dominance remains intact, and AI-integrated appliances could boost demand.

[Compliance Note]

  • All posts by Sellsmart are for informational purposes only. Final investment decisions should be made with careful judgment and at the investor’s own risk.

  • The content of this post may be inaccurate, and any profits or losses resulting from trades are solely the responsibility of the investor.

  • Core16 may hold positions in the stocks mentioned in this post and may buy or sell them at any time.

103
0
0
Comments
0
Please leave a comment first