Published : Nov. 1, 2017 - 17:35
Following a strong third-quarter performance, operating profits for Samsung Electronics are expected to continue to rise in the fourth quarter on the back of strong semiconductor exports, according to local investment and securities researchers on Wednesday.
(Yonhap)
Samsung Electronics’ fourth-quarter sales are expected to increase by 6 percent to 65.69 trillion won ($59.1 billion), while its operating profit is estimated to increase by 12 percent to 16.29 trillion won, according to a Mirae Asset Daewoo researcher. The investment and securities firm also added that the operating profit for Samsung’s semiconductors division is projected to see an increase of 11 percent to 11.1 trillion won, crediting strong memory chip supply and demand.
IBK Investment & Securities has projected that Samsung Electronics would hit record-high earnings in the fourth quarter. According to IBK researcher Kim Yun-ho, the company’s fourth-quarter sales are expected to increase by more than 17 percent on-quarter to 73 trillion won.
Yuanta Securities Korea also announced Wednesday that its target price for Samsung Electronics will increase from 3 million won to 3.8 million won.
Samsung Electronics announced Tuesday its third-quarter net profit more than doubled on-year from 4.53 trillion won last year to 11.1 trillion won, thanks to growing global demand for semiconductors. The company added that its chip sector hit a record operating profit of 9.96 trillion won.
Shinhan Investment, meanwhile, said that Samsung SDI, which posted a surprise earnings report in the third quarter, will continue to see progress in performance in the following quarters, raising the target price from 238,000 won to 270,000 won. It said the buoyance is backed by a 17.7 percent surge in sales of IT-related batteries, as well as 15.6 percent increase in sales of materials for polarizing plates, organic light-emitting diodes and semiconductors. The revenue from large batteries for energy storage systems surged 48 percent, it noted.
By Julie Jackson (juliejackson@heraldcorp.com)