Samsung Electronics will be able to announce some good news regarding mergers and acquisitions (M&As) as an acquisition process is well underway, the company's vice chairman Han Jong-hee said in a news conference in Las Vegas on Jan. 6.Han refrained from providing details about the matter, citin
The author is an analyst of NH Investment & Securities. He can be reached at hwdoh@nhqv.com. -- Ed. SEC’s 4Q22 OP plunged 60% q-q to W4.3tn, due mainly to deteriorating memory supply-demand conditions. We expect the global chip giant to experience sustained OP decline till 1Q23. Supply-demand improv
Samsung Electronics and LG Electronics, which have long competed in the electronics industry, are facing off in the automotive electronics market.LG Electronics and its affiliates have started to expand their workforce in the field of electric vehicles (EVs), which has emerged as a cash cow. LG Elec
The author is an analyst of NH Investment & Securities. He can be reached at hwdoh@nhqv.com. -- Ed. SEC’s 4Q22 OP is forecast at W5.89tn (-46% q-q), with the figure to miss consensus due to slowing memory semicon business. We expect the OP downtrend to continue through 2Q23. Supply-demand improvemen
The author is an analyst of KB Securities. He can be reached at jeff.kim@kbfg.com. -- Ed. Maintain BUY, target price of KRW75,000 We maintain BUY and TP of KRW75,000 on SEC. In the short term, earnings should decline amid the chip downcycle. In the mid/long term, however, capacity ramp-up and R&D ef
As Samsung Electronics' application processor (AP) Exynos is losing ground in the mobile market, the company may develop it into a brand specialized for automotive electronics and wearable devices.Samsung's flagship smartphone Galaxy S23 series, scheduled to be released early next year, will
Boeing CEO Dave Calhoun and Samsung Electronics chairman Lee Jae-yong have recently met in Seoul. The content of the meeting is yet to be made public.The two companies have maintained their partnership since 2012. According to experts, the two CEOs are likely to have discussed cooperation in the fie
Samsung Electronics and LG Electronics both achieved record-high quarterly earnings in the automotive electronics business in the third quarter. As the global auto market showed signs of recovery, the performance of electronics manufacturers also improved.Harman International Industries, a U.S. audi
With major companies announcing their finalized Q3 results this week, mixed results are expected from Samsung Electronics and LG Electronics in the automotive electronics business.LG Electronics’ Vehicle Component Solutions (VS) Division is expected to post a profit for two consecutive quarters afte
The author is an analyst of KB Securities. He can be reached at jeff.kim@kbfg.com. -- Ed. Maintain BUY, target price of KRW75,000 We maintain BUY and 12m TP of KRW75,000 on SEC. Despite downward revisions to our earnings forecast, we maintain BUY given the following:(1) SEC is expected to demonstrat
The author is an analyst of NH Investment & Securities. He can be reached at hwdoh@nhqv.com. -- Ed. Affected by reduced data center investment and lackluster demand for IT sets, SEC logged preliminary 3Q22 OP of W10.8tn (-23% q-q). The firm’s 4Q22 OP is projected at W9.5tn (-12% q-q). We expect the
The author is an analyst of KB Securities. He can be reached at jeff.kim@kbfg.com. -- Ed. Maintain BUY, target price of KRW75,000 Despite SEC’s 3Q22P earnings shortcomings, we maintain BUY and 12m TP of KRW75,000. We expect standout profit margins on business diversification (i.e., DP, foundry) and
The author is an analyst of KB Securities. He can be reached at jeff.kim@kbfg.com. -- Ed. Maintain BUY, target price of KRW75,000 We maintain BUY and 12m TP of KRW75,000 on SEC. We see 2H22 OP coming in at KRW23.2tn (-18% HoH, -22% YoY) and missing the market consensus by 10%, as all divisions excl.
The author is an analyst of NH Investment & Securities. He can be reached at hwdoh@nhqv.com. -- Ed. The memory semiconductor downcycle is expected to intensify in 3Q22. That said, SEC should outperform its competitors on both the arrival of peak seasonality for IT sets and the IT giant’s effective p
The author is an analyst of KB Securities. He can be reached at jeff.kim@kbfg.com. -- Ed. Expect reduction in chip capacity, record OP for DP We maintain BUY and TP of KRW75,000 on SEC. We maintain a positive outlook given:(1) the stock is bottoming out after valuations fell to a historic low (1.1x
The author is an analyst of NH Investment & Securities. He can be reached at hwdoh@nhqv.com. -- Ed. Demand for IT devices is slowing due to unfavorable macro factors. In particular, smartphones demand is sluggish. Supply limitations stemming from the rising difficulties in semiconductor process tran
The author is an analyst of KB Securities. He can be reached at jeff.kim@kbfg.com. -- Ed. Target price cut 13% to KRW75,000 We cut our TP by 13% to KRW75,000 (12m fwd BVPS x 1.47x target P/B) on (1) a decline in 3y avg. ROE (12.3%→11.6%) on lowered earnings estimates and (2) change in COE (8.47%→8.8
The author is an analyst of KB Securities. He can be reached at jeff.kim@kbfg.com. -- Ed. Maintain BUY, target price of KRW85,000 We maintain BUY and 12m TP of KRW85,000 for SEC, as the recent decline in valuation has been excessive while 2Q22 performance should be solid amid growing memory demand f
The author is an analyst of KB Securities. He can be reached at jeff.kim@kbfg.com. -- Ed. Maintain BUY but lower target price by 5.6% to KRW85,000 We lower our TP by 5.6% to KRW85,000 (12m fwd BVPS x 1.7x target P/B) to reflect a drop in 3y avg. ROE (13.3%→12.3%) attributable to revised down earning
LG Electronics has emerged as the No. 1 player in the global telematics control unit (TCU) market. TCUs are a key component that implements vehicular communications for connected cars.According to market research firm Counterpoint Research, LG Electronics accounted for 35.2 percent of the TCU market