Brokerage industry projections indicate that the combined operating profit of Samsung Electronics and SK hynix could approach 1,000 trillion won by 2027. As the semiconductor industry cycle recovers, profits for both companies are expected to surge, with analysts suggesting there is room for a revaluation of their stock valuations.
KB Securities released a report on the 13th analyzing that Samsung Electronics and SK hynix are currently in a deeply undervalued range. KB Securities analyst Kim Dong-won stated, "The combined operating profit of Samsung Electronics and SK hynix is expected to rise from 91 trillion won in 2025 to 641 trillion won in 2026, and further to 964 trillion won in 2027, approaching the 1,000 trillion won mark."
Industry insiders point out that, compared to the momentum of profit growth, current stock prices are severely undervalued. According to KB Securities' calculations, compared to 2025, the expected operating profits of the two companies in 2027 will surge by 13.2 times and 8.2 times, respectively. However, based on the closing price on the 12th, the expected price-to-earnings ratio (PER) for Samsung Electronics in 2027 is only 3.7 times, and for SK hynix, it is 3.2 times. The recent liquidation of a large number of high-leverage margin positions has caused the stock prices of both companies to fall by over 40% from their highs.
Regarding this, analyst Kim Dong-won emphasized, "The market's stock price has not yet reflected the expectations for performance improvement next year, and there is significant room for valuation revaluation going forward."
The market expects both companies to continue their best-ever performance in the third quarter of this year. KB Securities forecasts that Samsung Electronics' third-quarter operating profit will be 112 trillion won, and SK hynix's third-quarter operating profit will be 77 trillion won, representing year-on-year increases of 817% and 579%, respectively.
The logic supporting this performance lies in the expansion of long-term supply contracts and the upward trend in memory chip prices. As long-term supply agreements with hyperscale cloud providers (large tech companies) continue to expand, over 60% of the two companies' memory chip production capacity is already locked in by orders. Combined with the rising expectations for memory chip price increases, the companies are expected to continue delivering strong financial results.
Expanding shareholder return policies are also seen as a key catalyst for stock revaluation. Samsung Electronics and SK hynix are about to announce new shareholder return plans. Kim Dong-won stated, "Referring to the precedent set by TSMC, the new round of shareholder return policies is expected to drive both valuation recovery and stock price increases. With the continued improvement in the medium- to long-term supply and demand fundamentals of the stocks, the valuation revaluation has officially begun, which is likely to lead to further stock price rises."
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