Samsung Electronics also reported the risk of Lee Jae-yong trial… The prospect of ‘100,000 electrons’ came out

[뉴스토마토 우연수 기자] Despite the Corona 19 crisis and the trial risk of Vice Chairman Lee Jae-yong, Samsung Electronics’ stock price has settled at around 80,000 won. The memory and non-memory division profits are expected to improve significantly this year thanks to the recovery effect of the semiconductor industry. A report predicting the stock price of 100,000 won was also released.

According to the Korea Exchange on the 4th, for the first time on the 30th of last month, Samsung Electronics (005930)On the first trading day of the new year in 2021, the trend continued to rise, rising to 84,000 won during the intraday.-

Samsung Electronics has soared about 49.6% in two months since the rally started on November 2nd last year (starting at 56400 won), but securities prices predict that there is a high possibility of further gains. This is because the demand for memory semiconductors is increasing significantly due to the spread of telecommuting and the establishment of non-face-to-face infrastructure, and the semiconductor industry is expecting a supercycle this year thanks to the expansion of 5G, artificial intelligence (AI), and autonomous vehicle development this year.

On this day, Kiwoom Securities raised its target price for Samsung Electronics from KRW 90,000 to KRW 100,000. KTB Investment & Securities and Hi Investment & Securities also raised their target prices to 95,000 won and 96,000 won, respectively.

Park Yoo-ak, a researcher at Kiwoom Securities, said, “The fourth quarter of last year’s earnings are expected to show a bigger-than-expected decline in profitability due to the weak set division and the negative impact of the won dollar exchange rate.” He forecasts sales and operating profit for the first quarter at 53.8 trillion won and 8 trillion won, respectively. Each is down 12% QoQ.

He said, “It is expected that the display and consumer electronics (CE) divisions are expected to see a decrease in performance, which is entering the seasonal off-demand season.” In addition, the non-memory division is expected to achieve improved profitability compared to the previous quarter due to the expansion of new customers and the launch of new products by customers.” “We believe that securing new foundry customers, increasing Exynos’ market share, and improving DRAM business conditions will lead to a further rise in Samsung Electronics’ share price.”

Kim Yang-jae, a researcher at KTB Investment & Securities, also explained, “As the memory industry passes the trough, earnings will recover from the first quarter. In particular, as DRAM prices rebound faster, there is a greater possibility of an upward revision of earnings.”

The fact that Samsung Electronics vice chairman Lee Jae-yong was sentenced to nine years in prison also did not shake the stock price. After the closing of the market on the 30th, the special prosecutor has asked Vice-Chairman Lee to be sentenced to nine years in prison for revoking the case of the state affairs discussion.

However, securities prices believe that it is unlikely that past risks will affect the stock price. Researcher Kim Yang-jae said, “Since it is a very hot issue, many try to associate it with the stock price, but in fact, the old vice chairman of Samsung Electronics and the stock price of Samsung Electronics have nothing to do with it, and the previous stock price has little effect.” Since the actual group management is carried out by the president’s team, the impact of the chairman level is also small.

Looking at the movement of the stock price when the previous vice chairman Lee Jae-yong was announced, for the first time in the first trial on August 7, 2017, when a 12-year sentence was issued for this vice chairman, it fell for 5 consecutive trading days from the day of the ruling to KRW 47,400. The stock price went downhill from 4,220 won. However, in the second trial on December 27 of the same year, the day after 12 years were put into office, the stock price surged by 3%. On the 30th, before the ruling for remand of revocation, Samsung Electronics soared 3.45% to 81,000 won.