As Samsung Electronics' stock price has been hovering around 60,000 won for about 20 days, there is keen interest in whether it can rise further.
Expectations are rising as Samsung Electronics managed to maintain the 60,000 won level despite an 'earnings shock' in its second-quarter earnings announcement on the 8th.
According to the Korea Exchange on the 13th, Samsung Electronics maintained a closing price of around 50,000 won in the first half of this year, entering the 60,000 won range on the 24th of last month with a price of 60,500 won. Since then, Samsung Electronics' stock price has remained above 60,000 won, except for 59,800 won on the 30th of last month.
It especially showed strong recovery even after the second-quarter earnings announcement. Earlier, Samsung Electronics reported on the 8th that its operating profit dropped 55.9% year-on-year to 4.6 trillion won. Following the earnings shock, Samsung Electronics' stock price fell to 60,400 won on the 9th, down 1.63% from the previous trading day, but it closed at 62,600 won on the 11th, demonstrating its resilience.
The announcement of a plan to repurchase 3.9 trillion won worth of its own shares shortly after the earnings announcement is also interpreted as having helped defend against the decline in stock price. Of the repurchased shares, 2.8119 trillion won will be retired to enhance shareholder value, while the remainder is expected to be used for employee bonuses and other purposes.
In the securities industry, there are analyses suggesting that while Samsung Electronics hit the bottom in the second quarter, recovery is possible considering the peak season effects and the normalization of semiconductor performance in the third quarter.
Ryu Hyung-geun, a researcher at Daishin Securities, noted, "I don't think investors have absolute confidence that it is becoming a good corporation, but from the viewpoint of absolute stock prices, it is trading cheaply with the rise in book value per share (BPS)" and predicted, "In the second half of the year, the value of good stocks could become more prominent."
Ryu added, "Efforts to improve the overall business are ongoing, and through the second-quarter results, some of the legacy of the past has been resolved," indicating that there is potential for joint efforts like enhancing shareholder value through additional share repurchases and streamlining the business structure.
Son In-jun, a researcher at Heungkuk Securities, stated, "Performance is expected to rebound after hitting a low in the second quarter" and pointed out that, along with rising memory prices, a reduction in foundry losses due to recovery in utilization rates is anticipated, expecting a recovery centered on the device solution (DS) sector.
He continued, "There are still many variables to confirm, but it is necessary to look more upwards than downwards."
However, opinions on the rising trend of Samsung Electronics' stock price varied somewhat.
Park Yoo-ak, a researcher at Kiwoom Securities, suggested Samsung Electronics as a top pick in the semiconductor sector for the second half, saying, "In the third quarter, share repurchases are expected to proceed amid expectations of a performance turnaround, so the stock price's lows are likely to gradually rise."
He also evaluated, "It is a period when the upward momentum of stock prices could strengthen, which we should keep in mind."
On the other hand, Kim Rok-ho, a researcher at Hana Securities, predicted, "Since the second quarter results have solidly formed a bottom, we expect to see improvement in the second half," while maintaining the previous forecast (buy, target stock price 80,000 won) but noting, "It is difficult to say that the momentum for a rise is strong since the performance has decreased compared to the previous year."