Samsung's fourth-quarter operating profit is expected to hit a record $14.9 billion
According to south Korean media reported analysis agencies FnGuide Thursday provide statistics show that benefit from the chip business is strong, samsung electronics earnings in the fourth quarter of this year is expected to hit a record high.
The market is now averaging 16.3 trillion won ($14.9 billion) in operating profit for the fourth quarter, up 77.2 percent from a year earlier, the FnGuide said. Samsung's operating profit hit a record 14.53 trillion won ($12.8 billion) in the third quarter, up 179% from 5.2 trillion won a year earlier. That means samsung's operating profit in the fourth quarter will hit a record high.
On average, the market expects samsung's revenue to reach 66.1 trillion won in the fourth quarter, up nearly 28 percent from a year earlier. Among the brokers, Hanwha Investment & Securities Co., the south Korean brokerage, is most bullish on samsung's fourth-quarter results, which are expected to hit a profit of 16.9 trillion won.
Market analysts also expect samsung's chip unit to break through 10 trillion won for the first time in the fourth quarter, driven by strong global demand. Future assets Daewoo Securities co., LTD. (Mirae Asset Daewoo Securities co.), an analyst at the Doh Hyun - woo said that "Google, Facebook and other multinational IT companies are continuing to invest, IT ignited demand for server DRAM. In addition, the demand for mobile DRAM chips has increased recently. Sales of the iPhone X have been booming, and shipments of the Chinese smartphone market have recovered from the second half of this year, according to the analyst.
In the meantime, the won's recent appreciation against the dollar is unlikely to have a big impact on samsung's performance. Kim kyung-min, an analyst at Daeshin Securities Co., a south Korean brokerage, said that "the appreciation of the Korean won has had a very limited impact on samsung's performance. DRAM memory chip prices have jumped in, enough to offset the currency appreciation for samsung electronics performance of negative effects, and the euro business occupies the samsung IT and move a large proportion of the sales department.
The company's overall profit this year is also expected to hit a new high. South Korean brokerages expect samsung electronics to make 240 trillion won in revenue this year and more than 55 trillion won in operating profit. Analysts also expect samsung electronics' operating profit to reach 70 trillion won next year, thanks to continued growth in chip business.
Samsung electronics has soared in recent years thanks to its chip business. Chip business is the key to the growth of samsung electronics in recent years. While samsung's Note 7 explosion has had a big impact on the company's smartphone business, it has seen a sharp rise in profits thanks to its memory chip business. Samsung has previously said it will double its dividend next year after raising its dividend by 20 per cent this year. Over the next three years, the company will pay 9.6 trillion won ($8.5 billion) annually. Samsung also expects its capital spending to reach 46.2 trillion won this year.
The domestic brokerage generally optimistic about the samsung electronics earnings prospects at the same time, Morgan Stanley in the report, released late last month warning of the memory chip business prosperity may soon be peaking, and thus reduced the company's shares. In its latest report, Morgan Stanley downgraded samsung's stock to "outperform" from "overweight" and lowered its target price by 3.4 percent to 2.8 million won. The report predicts that samsung's memory chip unit may not grow significantly next year. "See the risk of recession, Morgan Stanley said, because of NAND flash memory chip prices since the fourth quarter of 2017 has begun to reverse, and DRAM memory chips in the first quarter of 2018 after the supply and demand of dynamic visibility has slipped".
The market is now averaging 16.3 trillion won ($14.9 billion) in operating profit for the fourth quarter, up 77.2 percent from a year earlier, the FnGuide said. Samsung's operating profit hit a record 14.53 trillion won ($12.8 billion) in the third quarter, up 179% from 5.2 trillion won a year earlier. That means samsung's operating profit in the fourth quarter will hit a record high.
On average, the market expects samsung's revenue to reach 66.1 trillion won in the fourth quarter, up nearly 28 percent from a year earlier. Among the brokers, Hanwha Investment & Securities Co., the south Korean brokerage, is most bullish on samsung's fourth-quarter results, which are expected to hit a profit of 16.9 trillion won.
Market analysts also expect samsung's chip unit to break through 10 trillion won for the first time in the fourth quarter, driven by strong global demand. Future assets Daewoo Securities co., LTD. (Mirae Asset Daewoo Securities co.), an analyst at the Doh Hyun - woo said that "Google, Facebook and other multinational IT companies are continuing to invest, IT ignited demand for server DRAM. In addition, the demand for mobile DRAM chips has increased recently. Sales of the iPhone X have been booming, and shipments of the Chinese smartphone market have recovered from the second half of this year, according to the analyst.
In the meantime, the won's recent appreciation against the dollar is unlikely to have a big impact on samsung's performance. Kim kyung-min, an analyst at Daeshin Securities Co., a south Korean brokerage, said that "the appreciation of the Korean won has had a very limited impact on samsung's performance. DRAM memory chip prices have jumped in, enough to offset the currency appreciation for samsung electronics performance of negative effects, and the euro business occupies the samsung IT and move a large proportion of the sales department.
The company's overall profit this year is also expected to hit a new high. South Korean brokerages expect samsung electronics to make 240 trillion won in revenue this year and more than 55 trillion won in operating profit. Analysts also expect samsung electronics' operating profit to reach 70 trillion won next year, thanks to continued growth in chip business.
Samsung electronics has soared in recent years thanks to its chip business. Chip business is the key to the growth of samsung electronics in recent years. While samsung's Note 7 explosion has had a big impact on the company's smartphone business, it has seen a sharp rise in profits thanks to its memory chip business. Samsung has previously said it will double its dividend next year after raising its dividend by 20 per cent this year. Over the next three years, the company will pay 9.6 trillion won ($8.5 billion) annually. Samsung also expects its capital spending to reach 46.2 trillion won this year.
The domestic brokerage generally optimistic about the samsung electronics earnings prospects at the same time, Morgan Stanley in the report, released late last month warning of the memory chip business prosperity may soon be peaking, and thus reduced the company's shares. In its latest report, Morgan Stanley downgraded samsung's stock to "outperform" from "overweight" and lowered its target price by 3.4 percent to 2.8 million won. The report predicts that samsung's memory chip unit may not grow significantly next year. "See the risk of recession, Morgan Stanley said, because of NAND flash memory chip prices since the fourth quarter of 2017 has begun to reverse, and DRAM memory chips in the first quarter of 2018 after the supply and demand of dynamic visibility has slipped".