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Samsung Electronics Headquarters, Seoul (Photo = Samsung Electronics) |
[Alpha Biz= Paul Lee] Seoul, September 23, 2025 – Kiwoom Securities has revised upward its target price for Samsung Electronics to KRW 105,000, highlighting expectations of a strong third-quarter earnings surprise and reiterating the company as its top pick in the semiconductor sector.
In a report published today, Park Yoo-ak, analyst at Kiwoom Securities, forecasted that Samsung’s earnings rebound, new foundry client wins, and growing market share in NVIDIA’s adoption of HBM4 (high-bandwidth memory) will drive the stock’s further upside momentum.
“While some investors remain cautious due to Samsung’s underperformance in recent years, we believe that concerns surrounding 1cnm DRAM, HBM4, and foundry operations will gradually turn into expectations as we approach year-end,” Park noted.
Strong Earnings Outlook for Q3
Park projected Samsung’s Q3 2025 revenue at KRW 82.7 trillion and operating profit at KRW 10.7 trillion, representing increases of 11% and 128% quarter-on-quarter, respectively. This would surpass both Kiwoom’s earlier forecast and the market consensus of KRW 9.7 trillion in operating profit.
The anticipated earnings beat is attributed to a 107% quarter-on-quarter surge in HBM shipments, which will bolster DRAM profitability, alongside a narrowing foundry loss driven by improved utilization rates.
By business segment, Park estimated Q3 operating profits as follows:
DS (Semiconductors): KRW 5.6 trillion (+1,014% QoQ)
SDC (Display): KRW 1.3 trillion (+155% QoQ)
MX·NW (Mobile Experience & Network): KRW 3.3 trillion (+7% QoQ)
VD·DA (Visual Display & Home Appliances): KRW 0.3 trillion (+35% QoQ)
Positive Momentum Expected to Continue in Q4
Looking ahead, Kiwoom forecasts Q4 revenue at KRW 80.1 trillion (down 3% QoQ) but operating profit at KRW 12 trillion (up 12% QoQ), significantly above the market consensus of KRW 10 trillion.
Park explained that rising ASPs (average selling prices) for memory products will continue to support DRAM and NAND profitability, while foundry losses are expected to narrow further. He added that Q4 could bring multiple positive developments, including HBM4 mass production qualifications and new foundry client wins, which may accelerate stock momentum.
“Despite the recent rebound, Samsung Electronics remains significantly undervalued compared to peers. With structural improvements underway, we see ample room for further upside,” Park emphasized.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
