Samsung Electronics' inventory of 52 trillion memory semiconductors plummeted, securities firms' stock price rises'

Samsung Electronics, which continued to increase production during the worst recession in the memory semiconductor industry, recorded a 34% drop in price and a record-high inventory of 52.1878 trillion won, and its inventory outlook rose sharply in a survey of 600 companies.

Domestic securities firms released a report on the 20th, predicting that Samsung Electronics' stock price will rise from the current 60,000 won level to the 80,000 won level in the future.

Bloomberg reported on the 20th that market research firm TrendForce reported that the average price of DRAM, which is mainly used in mobile phones and PCs, plunged 34.4% year-on-year in the fourth quarter of last year, a steeper decline than the 31.4% drop in the previous quarter.

An audit report disclosed by Samsung Electronics showed that unappropriated retained earnings (internal reserves) at the end of last year were 145,651.9 billion won. It increased by 18.8% from 2021 (122.2506 trillion won), and inventory assets increased by 20.7% from 41.3844 trillion won in 2021 to 52.1878 trillion won, the highest ever.

As for Samsung Electronics' inventory assets, product and product inventories (finished products) increased by 23.4% from a year ago to 16.322 trillion won, while semi-finished products and work in progress products (products in the manufacturing process) surged 32.8% to 20.775 trillion won.

The Ministry of Trade, Industry and Energy's exports of semiconductors in January of this year were $6 billion, down 44.5% from a year ago.

The decline in semiconductor exports contributed to the trade deficit as they rose sharply last year, -17.4% in November, -29.9% in November, -29.1% in December, and -44.5% in January.

In a survey of the 600 largest business survey index (BSI) by the Federation of Korean Industries (FKI), the outlook for electronic and communication equipment inventory in March was 125.0 due to the decline in demand for related products such as semiconductors, which was announced on the 21st, a sharp increase from 94.1 in the survey in March last year. .

If the company's inventory forecast exceeds 100, it indicates an overstock condition.

The BSI for electronic and communication equipment, including semiconductors, recorded 80.0, down 5.7p from the previous month's survey, the largest drop in the manufacturing industry.

With the current share price hovering around the 60,000 won mark, foreigners have been sweeping Samsung Electronics in large numbers since the beginning of the year.

According to the financial investment industry on the 20th, as a result of analyzing Samsung Electronics-related reports published this month, eight securities companies set Samsung Electronics' target stock price above the 80,000 won mark.

KB Securities maintained its target price of 80,000 won for Samsung Electronics in a report on the 20th, predicting that semiconductor operating profit would begin to recover from the third quarter after bottoming out in the second quarter.

Yuanta Securities maintained Samsung Electronics' target price of 90,000 won and published a report estimating Samsung Electronics' DRAM demand growth at 11%.

In its report on the 3rd, Daishin Securities raised the target stock price of Samsung Electronics by 23% from 65,000 won to 80,000 won.

Hi Investment & Securities maintained its target price of 75,000 won for Samsung Electronics in its report on the 20th, and its annual sales and operating profit are expected to decline by 10.4% and 65.7% year-on-year this year, but next year's performance will be expected to remain low due to demand recovery and the semiconductor industry It is believed that there is a high possibility of improvement due to the rate of increase in production.