Samsung Securities Estimates Samsung Electronics' Q2 Operating Profit at 86 Trillion Won, Including 16.3 Trillion Won in Bonus Provisions

Samsung Securities announced today (July 6) that it estimates Samsung Electronics' revenue and operating profit for the second quarter to be 182 trillion won and 86 trillion won, respectively.

Analyst Lee Jong-wook explained, "The operating profit is similar to the market consensus of 85 trillion won," adding, "We have reflected 16.3 trillion won in bonus provisions for the semiconductor division."

He continued, "We have raised our memory operating profit forecast from 80 trillion won to 84 trillion won," and explained, "We increased our assumption for the average selling price (ASP) growth of commodity DRAM from 50% to 55% compared to the previous quarter, reflecting factors such as the steep rise in server DRAM prices since June, and we also assumed further profitability improvements in NAND."

He further added, "We changed our assumption to reflect the first-quarter provisions in the second quarter, thereby increasing the second-quarter bonus provisions for the semiconductor division from 9.5 trillion won to 16.3 trillion won."

Analyst Lee analyzed, "While profitability in the device experience (DX) division, including smartphones, continues to slow down, the company is mitigating the pace of this slowdown through product mix improvements focused on high-end models and price increases," adding, "The foundry business is narrowing its losses (-0.5 trillion won), increasing the possibility of turning a quarterly profit in the second half of the year."

He also stated, "Various concerns raised after the sharp rise in DRAM prices and semiconductor operating profits, such as debates over AI model efficiency and domestic strike risks, are now mostly entering a phase of dissipation," and added, "In the meantime, demand for agent AI, Anthropic's annual revenue, and cloud companies' AI revenue have continued to grow without faltering, and clients are still demanding higher-performance HBM and larger-capacity server DRAM."

Furthermore, he emphasized, "Although the pace of DRAM price increases will slow down in the second half of the year, suppliers have not yet entered a phase of full-scale capacity expansion," and noted, "Samsung Electronics' recent investment plan announcement (investing 2.1 quadrillion won in memory by 2040) and the early expansion of production at Pyeongtaek P5 and P5-2 were events that demonstrated the scale of demand as perceived by the supplier."

Analyst Lee projected, "We estimate operating profits for 2026 and 2027 to be 372 trillion won and 565 trillion won, respectively," and forecasted, "ASP growth in the third quarter and shipment growth in the fourth quarter will drive further upward revisions in earnings."
※ Please note: This article was translated by AI and may contain errors.