STOCKS | HSBC Analysts Expect Samsung Electronics’ Q3 Operating Profit to Rise 25% on Higher Memory Chip Prices

HSBC analysts said strengthening memory chip prices may continue to support record results at Samsung Electronics. According to Odaily, analysts Ricky Seo and Han Kil Chang expect Samsung Electronics’ third-quarter operating profit to rise 25% quarter-on-quarter, driven by a 20% increase in sales. They cited expectations that DRAM and NAND chip prices will rise 15%, seasonal demand for OLED panels alongside the release of new foldable phones, and a recovery in smartphone profit margins. The analysts also said Samsung Electronics’ operating profit this year could increase by more than eightfold to 376 trillion won, as cloud service providers are unlikely to slow computing capacity expansion in the short term. They forecast operating profit to grow a further 37% next year. HSBC maintained its buy rating and a target price of 450,000 won.