By Robert Guy
Samsung Electronics (005930.KR) is set to recover a rough income and handling distinction title numbers on Apr 7 and a concentration will be on a Galaxy S8 smartphone. Detailed gain will be expelled after in April.
A patron tries out a Samsung Electronics Co. Galaxy S8 smartphone during a company’s D’light flagship store in Seoul, South Korea.
Photographer: SeongJoon Cho/Bloomberg
Credit Suisse is upbeat on a opinion for a South Korean giant, estimating first entertain handling distinction (OP) will transcend 10 trillion won for usually a second time in history. The attorney expects a large grant from a semiconductor business:
Semiconductors should comment for a bulk of a increase with estimates of W6.6 tn OP contribution. We design full precedence of new cost hikes to be reflected in DRAM profitability reaching over 50% OPM. NAND profitability should transcend 45%, levels not seen given 2004, on 2D and 3D NAND shortage.
But it is a impact of a new Galaxy S8 smartphone and Galaxy Note 8 that will be a concentration for investors over entrance quarters. Here’s Credit Suisse again:
2Q17 gain should get stronger as Smartphone increase start to minister significantly on GS8 launch. Sell-in volume should arise from 2 mn in 1Q17 to ~20 mn in 2Q17.
Driven by richer-mix, handset profitability should accelerate to W3.4 tn in 2Q17 from W2 tn in 1Q17. Depending on a sell through, high volumes of GS8 sales in 3Q17 followed by GN8 launch in 4Q17 should expostulate handset increase aloft on YoY basis. High-end smartphone brew should be richer as product cycle normalises and compensates for volume detriment driven by GN7 discontinuation final year.
Credit Suisse rates Samsung Electronics an outperform with a cost aim of KRW2,900,000 a share. Samsung, that is adult 70% over a past year, final traded during KRW2,107,000 a share.
Barron’s Tech Trader Daily blogger Tiernan Ray has created a integrate of engaging posts on what Samsung’s new releases could meant for Apple (AAPL). For some-more sum greatfully review Apple: Samsung Momentum Will Be Short-Lived, Says Canaccord and Samsung’s Next: Should Apple Be Worried.