Samsung Electronics’ Share Price Surged

On the 3rd, Samsung Electronics’ share price surged 6.03% from the previous day to record 5,500 won. On that day, SK Hynix’s share price also rose 6.48% to KRW87,700.

KOSPI soared 47.3% until this day, after the Korean stock market hit a low on March 19, but Samsung Electronics‘ share price climbed 26.9% and SK Hynix’s share price by 28.6%. The pace of recovery of the semiconductor’two-top’ stock, representing the Korean stock market, was only half the rate of KOSPI.

It is for this reason that KOSPI 2000 settled also depends on the share price of Samsung Electronics and SK Hynix. As of the last two days, Samsung Electronics accounted for 22.7% of KOSPI’s market cap and SK Hynix’s 4.5%. In particular, Samsung Electronics and SK Hynix’s good 2Q earnings forecasts support this observation.

According to F&Guide, a financial information company, Samsung Electronics is expected to record 6.3 trillion won in operating profit in the second quarter of this year, down 3.8% from the same period last year. However, securities firms expect Samsung Electronics’ operating profit to start rebounding in the third quarter, up 20.5% year-on-year to reach 9.37 trillion won.

Researcher at Cape Investment & Securities Yoon Young-kyo said, “In the future, the sector that meets or exceeds the consensus during the second quarter’s earnings season is likely to start raising its earnings forecast.” Explained.

It should also be taken into account that the share price levels of Samsung Electronics and SK Hynix are lower than those of foreign competitors. Based on this year’s earnings estimates, Samsung Electronics’ stock return ratio (PER) was 14.9x on the 3rd and SK Hynix PER was 13.6x. This is lower than the US micron’s PER of 19.4x. Compared to profitability, Samsung Electronics’ share price is only two-thirds that of Micron.

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Summary

On the 3rd, Samsung Electronics' share price surged 6.03% from the previous day to record 5,500 won. On that day, SK Hynix's share price also rose 6.48% to KRW87,700.

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