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Samsung Electronics headquarters in Seocho-gu, Seoul, on Jan. 8. (Photo: Yonhap News) |
[Alpha Biz= Reporter Lee Joonhyun and Kim Hyesil] Samsung Electronics is expected to post operating profit exceeding KRW 30 trillion in the first quarter of this year, driven by a sharp rebound in its semiconductor business, according to media reports.
Citing sources on April 8, AlphaBiz reported that Samsung Electronics’ first-quarter operating profit is estimated to reach the KRW 30 trillion range.
A source familiar with the company’s internal situation said Samsung has raised its profit targets after increasing DRAM supply prices by as much as 70%. The source added that Samsung is also encouraging quarterly contracts instead of one- to two-year long-term supply agreements, reflecting the same strategy.
According to internal estimates cited by AlphaBiz, Samsung Electronics’ first-quarter operating profit could reach as high as KRW 35 trillion. These figures, however, have not been officially confirmed by the company.
Woo Ki-hoon, former vice president of KOTRA and senior partner at Murepa Korea, said, “Breaking the KRW 30 trillion mark in quarterly operating profit clearly demonstrates the scale of the AI investment boom.” He added that Samsung’s preference for quarterly contracts reflects a strategic choice aimed not only at maximizing profits but also at supporting share price performance.
Meanwhile, Macquarie Securities recently set Samsung Electronics’ target share price at KRW 220,000. Daishin Securities, Korea Investment & Securities, and KB Securities have also raised their target prices to KRW 180,000.
Samsung Electronics, however, denied the report, stating that its first-quarter results have not been finalized.
The company previously reported strong performance in the fourth quarter of last year, posting revenue of KRW 93 trillion and operating profit exceeding KRW 20 trillion, buoyed by a strong DRAM market.
Alphabiz 이준현 기자(wtcloud83@alphabiz.co.kr)
