Stock Price Fell Despite Good Performance...Samsung Electronics Earnings Announcement

Summary

The hosts discuss a KB Securities report on Samsung Electronics after its Q2 preliminary results beat, though the stock dropped 20% on growth fears. They argue the valuation is very low, maintain a BUY target of 550,000 KRW, and expect a rebound driven by a strong Q3 outlook with 60% operating margin and continued ASP growth. They also note a historical pattern of positive opens after KOSPI circuit breaker triggers and jokingly reference viewer count as a bottom signal.

• Samsung Electronics Q2 preliminary results beat expectations, but the stock fell 20% from its peak on decelerating ASP growth concerns.
• KB Securities maintains a BUY rating and 550,000 KRW target, citing low valuation (2026E P/E 6.6x, P/B 2.6x).
• Q3 outlook projects operating profit of 12 trillion KRW on revenue of 20 trillion KRW, implying a 60% operating margin.
• Memory ASP increases are expected to continue into 2027, with HBM4 prices possibly doubling or tripling year-over-year.
• Dividend yields could reach 6% for common shares and 10% for preferred; additional treasury stock buybacks are likely.
• The hosts view the correction as a buying opportunity, anticipating a rebound when Q3 results confirm.
• Historical pattern suggests a high probability of a positive open after a KOSPI circuit breaker trigger.
• Viewer count is jokingly used as a market bottom indicator (needs over 2,000 real-time viewers).