KB Securities Defies Chip Bears With Call for Samsung Rally After 49% Slide

Forecast Trend Report by Period

“Samsung Electronics, SK Hynix to Post Combined Operating Profit of 964 Trillion Won Next Year”

Large Shareholder Returns Could Trigger Valuation Rerating

Samsung, Down 49% From Its Peak, at Start of Uptrend: KB

As warnings of a semiconductor peak spread across South Korea’s brokerage industry, KB Securities has issued a string of strongly bullish reports on Samsung Electronics and SK Hynix. The firm argues that the memory market is entering a prolonged supercycle, rather than a typical boom-and-bust phase, as supply constraints tighten. The call stands out as rival brokerages continue to cut their target prices.

“Samsung Electronics and SK Hynix Are Extremely Undervalued”

Kim Dong-won, head of research at KB Securities, wrote in a recent report that the two companies’ combined operating profit will surge from 91 trillion won last year to 641 trillion won this year and 964 trillion won next year, according to the financial investment industry on Aug. 15.

That breaks down to 382 trillion won for Samsung Electronics and 259 trillion won for SK Hynix this year, followed by 575 trillion won and 389 trillion won, respectively, next year. Kim said the combined total would approach 1,000 trillion won.