Kiwoom Securities reckons the red ink in Samsung Electronics’ non-memory business will vanish next year thanks to Exynos 2700.
The broker kept its voluntary “buy” call and a target price of 210,000 won (€121), so it is not exactly losing sleep.
Kiwoom Securities researcher Park Yu-ak pinned a lot of this on Exynos, saying Exynos 2700 will ride Samsung Foundry’s second-generation two-nano SF2P process.
“Improving the yield of the second generation (SF2P) process, expanding the need for cost reduction among customers, and improved benchmark performance will lead to the expansion of the Exynos 2700’s market share,” he said.
He thinks the chip will stop being the awkward cousin at family gatherings once mass production ramps.
Park Yu-ak said, “After entering full-scale mass production with Samsung Foundry’s SF2P process in the second half of this year, the Exynos 2700 is expected to record a 50% market share within the Galaxy S27”.
On that basis, Kiwoom pegged next year’s non-memory sales at 36.4 trillion won (€20.9bn), up 21 per cent year on year.
It pencilled in an operating profit of 1.8 trillion won (€1.04bn), flipping the segment into surplus.
Park expects the market will gradually warm to the non-memory numbers and treat them as additional upward momentum for the share price.
Kiwoom set out chunkier figures for this year, forecasting Samsung Electronics sales of 500 trillion won (€288bn), and operating profit of 173 trillion won (€99.6bn).
That would be up 50 per cent and 295 per cent from the previous year, which is the sort of maths that makes analysts feel invincible.
It expects general-purpose DRAM and NAND prices to rise 109 per cent and 105 per cent during the same period.
Kiwoom believes the jump in commodity DRAM prices and profitability will give Samsung Electronics the upper hand in pricing talks for sixth-generation high-bandwidth memory (HBM4).
