Samsung Electronics (005930.KS) – Chip demand & profits continue to cause anxiety

Samsung Electronics (005930.KS) (Q1FY23)

Introduction

Samsung Electronics Co., Ltd. engages in the consumer electronics, information technology and mobile communications, and device solutions businesses worldwide. The company offers smartphones, tablets, watches, and accessories; TVs, projectors, and sound devices; home appliances, including refrigerators, washing machines and dryers, vacuum cleaners, cooking appliances, dishwashers, air conditioners, and air purifiers; monitors, and memory and storage products; displays, and smart and LED signages; and other accessories.

It engages in technology, venture capital investments, cloud services, network devices installation and optimization, semiconductor equipment services, digital advertising platforms, marketing, consulting, connected services, logistics, financing, and software design activities; toll processing of display panels and semiconductors; development and sale of network solutions; manufactures semiconductors and food; provision of repair services for electronic devices and enterprise automation solutions; and development and supply of semiconductor process defect and quality control software. The company serves various industries, including education, retail, and finance, as well as government and corporate customers.

Highlights

The memory market is experiencing its worst slump in decades. Chip manufacturers increased their purchases of chips during the Covid-19 pandemic when people were trapped at home due to lockdowns.

Consumer electronics such as TVs, monitors, refrigerators, washing machines, air conditioners, and even smartphones are included in the DX segment. DX reported revenues of KRW46.22tn in Q1FY23, down 4% Y/Y, and operating profit fell 8% Y/Y to
KRW4.21tn.

Stock performance

Samsung‘s stock price showed an upward trend in the past 3-months period and gave a 17% return. The stock price surged by 21% in the past 1-year. The stock has a 52-week high of KRW51,800 and a 52-week low of KRW72,700.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– Economic Value Added Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– Key Metrics
– Management Outlook
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 38

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