Samsung Electronics' stock price sluggish despite 107 trillion won operating profit

Samsung Electronics achieved a solid performance, settling within the market's expected range of 104 trillion to 109 trillion won, despite the absence of guidance. The company announced a third-quarter operating profit of 107.4 trillion won.

This performance was assessed as decent, falling in the middle of the market's previous expectations of 104 trillion to 109 trillion won.

Despite the lack of guidance, the company's strong performance did not immediately cause significant stock price volatility.

In the U.S. market, memory semiconductor-related stocks such as Micron Technology rose by 4% and SanDisk by 2%.

However, despite these positive earnings, a large-scale sell-off by foreign investors, totaling 3 trillion won, limited stock price growth in the domestic market.

This decline is attributed primarily to changes in the macro environment and supply-demand imbalances, rather than internal corporate issues.

Amidst a decline observed due to short-term supply and demand factors, the strengthening dollar was identified as the fundamental cause of foreign investor sell-offs. As the decline is due to short-term supply and demand issues, a rebound is expected if strong buying interest emerges. Foreign investor selling is interpreted as a short-term supply and demand factor, suggesting a potential rebound if active buying enters the market.

A trend of investment capital exiting emerging markets globally was observed, which is interpreted as a decline due to short-term supply and demand factors.

If active buying interest enters the market, the stock price is expected to attempt an increase.

Samsung Electronics' cumulative operating profit for the third quarter reached approximately 253 trillion won.

Despite its very high cash flow generation capacity compared to its market capitalization of 1,500 trillion won, a valuation gap of 5.5 times lower than Micron raised controversy over undervaluation.

Over the past month (September 8 to October 8), foreign investors sold 27 trillion won in the domestic market, intensifying capital outflows.

Individual investors are in a difficult position to act as active buyers due to losses in the first half, and domestic institutions also appear to lack the capacity or willingness to absorb foreign selling.

Therefore, a change in the macro environment that would draw foreign investors back into the domestic market must precede any stock price rebound.

This negative perception is a primary factor behind the stock's underperformance. SK Hynix is showing a relatively weak performance as issues related to Solidigm are perceived negatively.

This negative perception has been identified as a major factor contributing to the relatively weaker stock price of SK Hynix.

Jusung Engineering showed very high volatility in individual stocks, with an 18% surge one day followed by an 11% plunge the next.

This is attributed to macro market changes, such as Micron's earnings announcement and expansion issues, determining the fluctuations of individual stocks.

Analysis suggests that it is difficult to respond to the market by focusing only on individual stocks without considering overall market trends like option expirations and ETF rebalancing.

According to an IBK Investment & Securities report, SK Hynix is currently in an excessively undervalued state.

While memory demand continues to rise due to AI model growth, limited supply increases are acting as a positive factor.

A third-quarter operating profit margin of 78.4% is projected, and approximately 90 trillion won in shareholder returns is expected this year.

The ongoing share repurchase program is reportedly nearing completion.

This is interpreted by the market as part of a shareholder-friendly policy.

Despite Samsung Electronics' strong earnings announcement, its stock price fell, leading to a barrage of critical questions from investors regarding the reliability of securities reports.

Investors' frustration grew as analysts failed to clearly explain why the stock price could not rise.

There was a call for clarification on 'why the stock price is not moving now,' rather than simply stating that the company's value is good.

Individual investors are questioning the content of the reports, pointing to a lack of buying by institutional investors.

HBM4 is expected to command the highest price among the entire lineup, with its proportion projected to expand from 40% this year to 80% next year. KB Securities forecasts Samsung Electronics' HBM selling price to increase by more than 100% year-on-year, while also suggesting that shareholder returns could increase more than fourfold over the next three years.

HBM4 is expected to form the highest price range among the entire HBM lineup, with its proportion projected to expand from 40% this year to 80% next year.

Additionally, the possibility of a fourfold increase in asset return over the next three years was raised.

Experts cite macroeconomic conditions, but the current 'abnormal' market trend is not expected to last long.

According to market proverbs, abnormal trends are difficult to sustain.

Meanwhile, despite a correction, the U.S. market showed favorable chart trends, with semiconductor-related stocks rebounding.

Broadcom is in talks with OpenAI to secure over $50 billion in funding for custom AI chip development, and SpaceX has also sought $40 billion. Companies facing funding difficulties, such as Oracle, are addressing the AI chip shortage by purchasing chips through separate entities and then leasing them.

Broadcom is discussing over $50 billion in funding with OpenAI for custom AI chip development, and Oracle is also using funding entities due to difficulties in issuing corporate bonds.

While Wall Street firms establish separate entities to acquire AI chips and lease them to companies like Oracle, SpaceX is also discussing $40 billion in funding. As private companies' financial difficulties intensify, there's even a growing need for state-level intervention.

Yesterday, the Korean market saw Samsung Electronics turn positive during the day before falling 2.5% from its peak, impacting overall index weakness.

Transformer and cosmetics-related stocks also surged early in the session but gave back their gains due to profit-taking.

LG Electronics, which posted an earnings miss, also experienced a significant decline, indicating a day of overall dampened investor sentiment.

The biotech stock Peptron plummeted 25% yesterday following reports of a breakdown in cooperation with Eli Lilly, and continued its decline today with a -23% drop in after-hours trading.

Some stocks may experience a disappearance of buying power or a decline during trading hours due to rebalancing, leading to increased volatility. As today is both options expiration and ETF rebalancing day, caution is advised against one-sided trends and chasing rallies.

Some stocks may experience a disappearance of buying power or a decline during trading hours due to rebalancing, so caution is advised against one-sided trends, and the possibility of opposite positions should also be considered.

The continuous upward trend of the U.S. stock market is analyzed to have provided significant investment returns to individual investors.

Contrary to expectations of interest rate cuts in the first half, the macro environment shifted significantly to an interest rate hike stance in the second half.

In this changed environment, strong stock chasing or buy-and-hold strategies, as seen in the first half, may no longer be effective.

As the fourth quarter is a period of intense returns competition, a conservative strategy is required, with a shorter investment horizon and more cautious stock holdings.