[Alpha Biz= Paul Lee] Daishin Securities maintained its “Buy” rating on Samsung Electronics (KRX: 005930) with a target price of KRW 74,000, citing expectations of a gradual recovery in valuation from the third quarter of 2024. The stock closed at KRW 58,100 on the previous trading day.



Analyst Ryu Hyung-geun noted that Samsung's weak performance in the first half of the year is largely due to a strategic shift from short-term market share toward strengthening long-term earnings fundamentals. While a rapid rebound in technological competitiveness may be difficult, signs of improvement are expected to emerge starting in Q3.



Samsung has reportedly completed qualification for its 1b DRAM with major clients, and sales contributions are anticipated to accelerate from the third quarter. This is expected to provide momentum to regain market share in the general-purpose DRAM segment.



For NAND flash, Samsung is working to meet specifications required for AI inference applications. The company is expected to complete process upgrades necessary for mass production in Q4 and is proceeding as planned with development of its hybrid-bonded “V10” product.



While high-bandwidth memory (HBM) sales expectations have been revised down to 55 billion gigabits due to delays in entering North American GPU customers, Daishin believes improvement is still possible. Samsung has successfully qualified its HBM3e with all but one major client and is progressing with HBM4 development. Yields for the base die have stabilized, and the core die (1c DRAM) yields are showing improvement.



Sample shipments to major clients are expected to begin in August, with full product certification targeted by year-end.



Ryu added that the stock is trading at 0.9x 12-month forward price-to-book ratio, implying favorable risk-reward at current levels.

 

 

 

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