005930 KS

Samsung Electronics Co Ltd

TMT


Presented:12/18/2017
Price:₩51,560.00
Cap:$322.06B
Current Price:₩61,000.00
Cap:$376.65B

Presented

Date12/18/2017
Price₩51,560.00
Market Cap$322.06B
Ent Value$274.60B
P/E Ratio9.86x
Book Value₩29,707.09
Div Yield1.09%
Shares O/S6,871.65M
Ave Daily Vol10,963,350
Short IntN/A

Current

Price₩61,000.00
Market Cap$376.65B
Samsung Electronics Co., Ltd. engages in the manufacturing and selling of electronics and computer peripherals. The company operates through following business divisions: Consumer Electronics, Information Technology & Mobile Communications and Device Solutions. The Consumer Electronics business division provides cable television, monitor, printer, air-conditioners, refrigerators, washing machines and medical devices. The Information Technology & Mobile Communications business division offers handheld products, communication systems, computers and digital cameras. The Device Solutions business division comprises of memory, system large scale integrated circuit and light emitting diode. The company was founded on January 13, 1969 and is headquartered in Suwon, South Korea.

Please note, this stock split on 05/04/2018 at a ratio of 50/1. The presented data has been updated to account for the change, however, the text of the note may refer to data based on the original presented price of KRW 2,578,000.00.

Publicly traded companies mentioned herein: BOE Technology Group Co Ltd (000725 CH), LG Electronics Inc (066570 KS), Micron Technology Inc (MU), Morgan Stanley (MS), Samsung Electronics Co Ltd (005930 KS), Samsung Life Insurance Co Ltd (032830 KS)

Highlights

The presenter is long shares of Samsung Electronics (005930 KS), and views the recent ~9% decline as a buying opportunity heading into the New Year. At ~2.5mm KRW, the market seems to believe the memory cycle is at a cyclical peak. However, he thinks the cycle is “stronger and more sustainable than previous cycles”, and the risk/ reward is skewed to the upside heading into January 2018. Despite near-term NAND pricing concerns, better than expected DRAM pricing in Q1, the OLED business, and capital deployment could drive upside for Samsung earnings and shares. The presenter is modeling earnings 20% ahead of the Street’s 366,438 KRW estimate for 2018, and assuming a reasonable 10-11x multiple gets him to a 4mm KRW price target by the end of 2018.

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Idea Discussion

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