 |
Samsung SDS Jamsil Campus (photo = Samsung SDS) |
[Alpha Biz= Reporter Kim Minyoung] NH Investment & Securities predicted Samsung SDS on the 26th that its profitability will improve this year as its IT service business grows and its logistics business improves. The investment opinion was 'buy' and the target was 'maintain' of 210,000 won. The closing price of the previous trading day was 152,000 won.
"We will strengthen our earnings momentum this year with the expansion of cloud and Cello Square, the base effect and the launch of generative AI services," said NH Investment & Securities. "We are strengthening our business competitiveness using 5.4 trillion won in net cash, including the expansion of M & A and cloud-oriented Capex."
Samsung SDS announced that its sales in the first quarter of this year fell 5% year-on-year to KRW 3.2473 trillion and operating profit rose 16% to KRW 225.9 billion over the same period. This is above and beyond the market consensus.
Sales in the IT service sector rose 6% year-on-year to 1.5536 trillion won, of which high value-added cloud sales rose 29% year-on-year to 530.8 billion won due to the increased operation rate of Dongtan Data Center. The solution also grew outward in seven quarters due to increased demand for next-generation ERP conversion. However, the operating profit ratio of the sector was 9.3%, down slightly from the same period last year.
Sales in the logistics BPO sector fell 12 percent year-on-year to 1.6937 trillion won. The operating profit ratio improved significantly in the second half of last year due to one-off profits related to settlement. The effects of the increase in air volume due to higher sea fares due to traffic restrictions and strong sales of new products by major customers are uncertain, but the Cello Square's continued high growth is encouraging.
NH Investment & Securities expects Samsung SDS' operating profit to grow 14% year-on-year this year.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
