Shinhan Investment remained "buy" for Samsung Electronics, saying it would slightly lower its memory performance in 2022 due to the extension of IT supply chain disruptions due to the Chinese power restriction issue, and lowered its target price by 4% to 96,000 won.
"The essence of the adjustment of the memory industry that will occur from the fourth quarter is a setback in the IT supply chain.
Front-line companies have to handle the burden in the short term while accumulating a relatively large amount of memory inventory," Shinhan Investment said on the 12th. "Due to the Chinese government's recent power restrictions, it is understood that some IT fab in China are adjusting their operation rate,"
Shinhan Financial Investment said. "The suspension of IT plants in China due to China's power restrictions is negative for the memory industry.".
Samsung Electronics'third-quarter earnings were 73 trillion won in sales and 15.8 trillion won in operating profit, exactly in line with the consensus of Shinhan Financial Investment.
It seems that rising prices of DRAM and NAND, recovery of smartphone shipments, increase in operating rate of organic light-emitting diode (OLED), and exchange rate effect have affected earnings improvement.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com