Samsung Electronics: Server Memory Chips To Be The First To Recover

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About: Samsung Electronics Co., Ltd. (SSNLF)
by: Hyundai Motor Investment & Securities
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Hyundai Motor Investment & Securities
Long/short equity, Deep Value, growth at reasonable price, Korea
Summary

We maintain BUY and our six-month forward target price.

Preliminary operating profit was an earnings surprise, beating the consensus by 9.7%.

Earnings at every division are set to grow over the next three years.

Investment highlights

We maintain BUY and our six-month-forward target price of KRW71,000 on Samsung Electronics (OTC:SSNLF), applying a 1.72x target P/B to 2020F BPS. Samsung reported preliminary sales of KRW59tn for 4Q19, which