Samsung Electronics, target price of 200,000 won appears.. equivalent to 10 million won before stock split

A target price of 200,000 won has emerged for Samsung Electronics, which reported strong performance in the fourth quarter. This corresponds to 10 million won based on the price before the stock split.

KB Securities raised the target price for Samsung Electronics from 180,000 won, which was suggested just before the earnings announcement on the 6th, to 200,000 won, reflecting the results of the preliminary fourth-quarter earnings announcement. It was also presented as the top pick in semiconductors.

Samsung Electronics conducted a stock split in early 2018 as one of the measures to enhance shareholder value, splitting one share into 50 shares. This was in response to opinions that the absolute level of the stock price was high, making it burdensome for small shareholders to access.

The closing price on the 8th of 138,800 won corresponds to 6,940,000 won based on the price before the stock split. The target price of 200,000 won reaches 10 million won.

KB Securities stated, "Samsung Electronics' operating profit for the fourth quarter is estimated to have reached 20 trillion won, but the adjusted operating profit considering the semiconductor (DS) performance bonuses is estimated to achieve between 21 trillion and 23 trillion won."

They continued, "Operating profit for the first quarter is expected to quadruple year-on-year to 27 trillion won, and operating profit for the second quarter is expected to increase sevenfold year-on-year to 34 trillion won, indicating an earnings surprise is anticipated," and predicted, "This year's quarterly operating profit low point will be 20 trillion won."

This year's annual operating profit is projected to triple to 145 trillion won. The memory operating profit is expected to account for 81% of the total operating profit at 108 trillion won.

KB Securities noted, "Currently, Samsung Electronics' stock price is trading at a 47% discount compared to the average of DRAM companies, with a PER of 7.6 times and a PBR of 1.8 times based on this year's expected performance," and concluded that it is "the most attractive option in global DRAM."