Key Call: Samsung Electronics "Now our preferred exposure in Memory Semis;..."

研报英文原文证据摘录

Key Call: Samsung Electronics "Now our preferred exposure in Memory Semis;..."

Global Research

20 May 2026ab

Key Call: Samsung Electronics Equities

KoreaNow our preferred exposure in Memory Semis;

add to APAC Key Call List Semiconductors

12-month rating Buy

12m price target Won400,000Clear catalysts ahead once the labour negotiations are past

Prior : Won275,000

Samsung ordinary shares are up 115% YTD, but have still underperformed SK Hynix and

MU, up 158%/122% respectively. Though ongoing labor negotiations remain an Price (20 May 2026) Won276,000

overhang, we believe the court ruling announced 18 May (link), which places significant RIC: 005930.KS BBG: 005930 KS

limits on the union’s full-scale strike scheduled to begin on 21 May (and last for 18 days),

should help alleviate some of the concerns. Whilst the strike may disrupt production to Trading data and key metrics

some extent, it could also boost pricing and hence mitigate the impact. Looking beyond 52-wk range Won296,000-53,900

this, we see clear positive catalysts. First, agentic AI keeps pushing up memory demand, Market cap. Won1,633,820b/US$1,083b

and we now forecast undersupply until 2Q28. Second, Samsung is set to benefit more Shares o/s 5,920m (ORD)

from revised LTAs than most peers as it can deploy more incremental capacity faster. Free float 92%

Third, with improved execution, we now forecast Samsung to reach market share parity Avg. daily volume ('000) 29,313

with SK Hynix for HBM in 2027 (40%). Fourth, we expect Samsung to generate Avg. daily value (m) Won6,274,450.5

Won233tn of FCF in 2026E and Won428tn in 2027E. Meeting 50% of FCF return to Common s/h equity (12/26E) Won731419b

shareholders target would generate significant incremental returns to shareholders. At P/BV (12/26E) 2.2x