KB Securities stated Samsung Electronics might see its working revenue develop to almost 100 trillion received (roughly $67.65 billion) subsequent yr, whereas sustaining its goal worth of 160,000 received.
In an organization evaluation report launched on Dec. 18, Kim Dong-won, head of analysis at KB Securities, stated, “Because the world’s largest DRAM producer, Samsung Electronics is predicted to be the most important beneficiary of rising costs for high-bandwidth reminiscence (HBM) and traditional DRAM, placing it inside clear attain of attaining 100 trillion received in working revenue subsequent yr.” The brokerage additionally maintained its “purchase” score. KB Securities estimates Samsung Electronics’ working revenue subsequent yr at 97.12 trillion received.
Kim stated, “Samsung Electronics raised server DRAM costs by 60% within the fourth quarter, marking the most important worth improve ever,” including, “The corporate is predicted to keep up aggressive worth hikes within the first quarter subsequent yr amid extreme provide shortages.”
He continued, “HBM3E costs are additionally estimated to have risen by 20 to 30% lately as orders from application-specific built-in circuit (ASIC) corporations surged,” including that “a robust enchancment in earnings is predicted as elevated shipments of HBM4, that are projected to hold a 40 to 50% worth premium beginning within the first half of subsequent yr, are added to the combination.”
Samsung Electronics’ HBM bit shipments subsequent yr are projected to triple yr on yr to 11.2 billion gigabits, with HBM4 accounting for roughly half of whole shipments. This outlook displays surging HBM3E orders from ASIC corporations akin to Google, Amazon, and Microsoft, alongside a rising chance that Samsung will enter Nvidia’s HBM4supply chain within the first half of subsequent yr.
Accordingly, KB Securities estimates Samsung Electronics’ working revenue for the fourth quarter of this yr at 19 trillion received, practically triple the extent recorded a yr earlier. Kim added, “Regardless of being the most important beneficiary of rising HBM and traditional DRAM costs, Samsung Electronics’ shares are buying and selling at a 43% low cost to the common valuation of its friends, making it the most affordable amongst world DRAM makers,” noting that “given its deeply undervalued company valuation, the corporate seems poised to enter a re-rating part.”
