Samsung Electronics (005930 KS) (Buy) - Stronger memory but lower earnings from other businesses

研报英文原文证据摘录

Samsung Electronics (005930 KS) (Buy) - Stronger memory but lower earnings from other businesses

Global Markets Research

Samsung Electronics 005930.KS 005930 KS 22 June 2026

EQUITY: TECHNOLOGY

Stronger memory but lower earnings from other businesses Rating Remains Buy

Maintain Buy and raise TP to KRW670,000; less than expected bonus Target price

Increased from KRW 670,000burden, but non-memory businesses facing earnings downside KRW 590,000

Maintain Buy and raise TP to KRW670,000; 2Q results to be stronger than expected Closing22 June price2026 KRW 353,500

thanks to lower bonus provision expenses than projected earlier

We maintain our Buy rating for Samsung Electronics (SEC) and raise our TP from Implied upside +89.5%KRW590,000 to KRW670,000 (90% implied upside). We maintain our target P/B of 5.0x,

which implies a target P/E of 8.3x. Our target multiple of 5.0x reflects enhanced business Market Cap (USD mn) 1,343,819.3

stability and visibility backed by memory long-term agreements (LTAs). We forecast SEC ADT (USD mn) 4,412.4

to generate an ROE of ~60% during 2026-27F.

We expect SEC to report 2Q26F OP of KRW76tn, above our previous forecast of Relative performance chart

KRW67tn. We had previously incorporated KRW24tn worth bonus provisions for 2Q.

However, following the final labor-management agreement, the bonus payout ratio was

set at 10.5%, below our previous assumption of 12%. Accordingly, we now estimate total

bonus provisions (including the recognition of all 1H bonus accruals in 2Q) at KRW19tn,

lower than our previous estimate.

Greater price increase vs. peers expected in 2Q; HBM price to increase

substantially from 2H26F; foundry/LSI businesses to face increased bonus burden

We expect SEC to have achieved relatively larger price increases than its peers during