Shulou(Shulou.com)11/24 Report--

CTOnews.com February 20 news, the National Bank of Korea (KB) securities analysts said that still maintain Samsung Electronics's buying view and 80,000 won target price.

They think:

(1) although major customers are focusing on clearing inventory in the face of low seasonal demand, inventory should return to healthy levels in the second quarter of 23.

(2) as prices are close to cost levels, the decline in chip prices in the second quarter of 23 should slow (Q4-30% → Q1-20% → Q2-10%)

(3) the decline in earnings should end when earnings are released in the first quarter (April). We believe that the dynamics of chip supply and demand will improve as signs of the end of the downward cycle, such as falling inventories and slowing prices, begin to emerge in the second quarter of 23.

CTOnews.com has reported that Samsung Electronics (SEC) announced last week that it would borrow 20 trillion won (4.6% per annum; Samsung shows interest income of 920 billion won; full redemption / early redemption at maturity in 2025) from Samsung display (Samsung Display) to finance operations.

By the end of 2022, SEC had 115 trillion won in cash reserves (104 trillion won in net cash), which is inevitable given that its DS division is expected to lose money for the first time in 14 years. In addition, most of the planned capital expenditure of 53 trillion won this year will be spent on South Korean operations.

Taking into account expected DS losses, Samsung Electronics expects OP to be 13 trillion won in 2023 (down 70% from a year earlier) and 600 billion won in the second quarter of 23 (4.3 trillion won in the fourth quarter and 1.1 trillion won in the first quarter).

Samsung said indirect production cuts would reduce DRAM production by 9 per cent and global DRAM supply by 4 per cent, which would help restore the balance between supply and demand in the second half of 23. In other words, Samsung believes that the dynamic relationship between supply and demand will begin to rebound in the third quarter of 23.

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.