Daeshin Securities reported on the 7th that Samsung Electronics posted an estimated operating profit of 89.4 trillion won in the second quarter of 2026, a strong result achieved even after absorbing a substantial performance-bonus provision estimated in the mid-to-upper range of 10 trillion won.
By division, the DS (Device Solutions) semiconductor unit contributed 89.6 trillion won in operating profit. Within that, the memory semiconductor business generated an estimated 91.9 trillion won, while the non-memory (logic/foundry) business recorded a loss of 2.3 trillion won. The DX division — which encompasses smartphones and consumer electronics — swung to a loss of 1.1 trillion won.
Within the memory business, DRAM shipment volumes rose an estimated 10% quarter-on-quarter, surpassing the brokerage's earlier forecast of a 6% increase. Stripping out the bonus provision, memory semiconductor operating profit would have reached approximately 109 trillion won.
Daeshin Securities reiterated its buy recommendation on Samsung Electronics with a target price of 560,000 won per share. The stock was trading at 318,800 won as of 6th July.
The brokerage identified three potential catalysts for a re-rating: a resumption of share buybacks, price increases for high-bandwidth memory (HBM) chips, and additional foundry contract wins. It expects the average selling price of HBM in 2027 to rise 91% year-on-year.
For the full year 2026, Daeshin Securities projects Samsung's revenue at 744.8 trillion won and operating profit at 387.2 trillion won. In 2027, it anticipates further growth, with revenue reaching 976.3 trillion won and operating profit climbing to 562.7 trillion won.