[Edaily Reporter kyoungeun kim ] Forecasts indicate that SamsungElectronics(005930)will post operating profits in the 100 trillion won range for the third quarter. Although earnings estimates have been revised downward due to the strong won and widening losses in the mobile division, analysts predict that the medium- to long-term upward trend will continue, as the memory price negotiation environment remains favorable to suppliers.

Son In-jun, an analyst at EUGENE INVESTMENT & SECURITIES, stated in a report on the 29th, “Memory sector stock prices will continue a gradual upward trend over the medium to long term as they confirm the sustainability of market conditions and reflect consistent shareholder returns,” adding, “SamsungElectronics will enhance its competitiveness within its peer group through differentiated performance based on its turnkey capabilities and pricing policies.”
He estimated SamsungElectronics’ third-quarter operating profit at 103.6 trillion won, a 16% increase from the previous quarter. He maintained his “Strong Buy” investment rating and target price of 560,000 won.
Analyst Son said, “We lowered our earnings estimates by revising the won-dollar exchange rate assumption from 1,440 won to 1,400 won due to the strengthening won, and to reflect the widening deficit in the Mobile Experience (MX) division and the burden of additional provisions for performance-based bonuses.” Operating profit estimates for this year and next year were lowered to 365.2 trillion won and 595.8 trillion won, respectively, from previous projections.
By division, the DEVICE Solutions (DS) division’s third-quarter operating profit is expected to reach 104 trillion won, a 17% increase from the previous quarter. Driven by price hikes centered on server DRAM and enterprise solid-state drives (eSSDs), the blended average selling price (ASP) for DRAM and NAND is expected to rise by 17% and 18%, respectively, and the ramp-up of High Bandwidth Memory (HBM) 4 is also expected to contribute to earnings. In contrast, the DEVICE Experience (DX) division is estimated to post an operating loss of 1.8 trillion won due to increased cost pressures resulting from limited product price hikes.
Operating profit for the fourth quarter is expected to reach 114.9 trillion won, an 11% increase from the previous quarter.
Analyst Son added, “From the fourth quarter through the first quarter of next year, the price negotiation environment for mainstream DRAM and NAND, as well as for HBM in 2027, is developing in favor of suppliers, making it highly likely that price assumptions will be revised upward further.”