April 19, 2024

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[THE INVESTOR] Samsung Electronics’ stock price will bottom out at 35,400 won (US$31.57) considering its dividend yield, said Hana Financial Investment on Dec. 27 lowering the target price to 45,000 won from 47,000 won.

Reflecting the slow semiconductor exports, the securities firm lowered the fourth-quarter operating profit estimates to 12.5 trillion won from 13.3 trillion won. Exports of memory chips and multi-chip packages for mobile products in December was less than half of the previous month. However, dividend yield for common stocks is attractive at 3.7 percent, close to that of Taiwan’s TSMC, pointed out analyst Kim Gyeong-min. 

Lowering the fundamentals, one of the two signals for stock price recovery, has been done. The second hinges on the possibility that DRAM price decline may be lower than expected. Investors should purchase its stocks with confidence that the price will hike, he added. 

By Hwang You-mee (glamazon@heraldcorp.com)