DAISHIN SECURITIES noted on the 21st that Samsung Electronics has begun efforts for structural improvement, forecasting that the results will materialize in the second half of the year. It maintained a 'buy' investment opinion and a target price of 74,000 won. The closing price of Samsung Electronics on the previous trading day was 55,800 won.
Ryu Hyung-geun, a researcher at DAISHIN SECURITIES, explained that Samsung Electronics is shifting its capital expenditures (Capex) focus from short-term market share expansion to securing fundamental technological competitiveness through research and development (R&D) investments. Efforts will be made in process development to enhance DRAM quality competitiveness, and new solutions will be introduced for NAND business efficiency.
Researcher Ryu stated, "Efforts for structural improvement have begun to materialize in various areas such as Capex and technology development trends," and predicted, "As we move into the second half of the year, results will materialize." However, he added that since the market is waiting for proof rather than expectation, these efforts may not yet be reflected in stock prices.
He further explained, "Samsung Electronics has entered a phase without valuation burdens or risks," adding, "However, the reason the stock price remains in a range is due to the market's significant concerns regarding the recovery of technological leadership."
Currently, Ryu believes it is a period with little advantages for selling. He stated, "This is a period where more emphasis should be placed on potential improvements," adding, "As the semiconductor cycle is expected to improve, the operating environment for Samsung Electronics' memory semiconductors will also improve as we move into the second half of the year," and he noted that it could become the stock with the greatest upside potential from a profit standpoint over the next two years.