Samsung Electronics is receiving high attention from the securities industry as the largest beneficiary of the improving global memory semiconductor market conditions. Meritz Securities maintained its 'Buy' recommendation for Samsung Electronics, presenting a target price of 420,000 KRW, and evaluated the company as having high mid- to long-term investment attractiveness.

Entering a Profitability-Centric Memory Super Cycle The securities industry believes that the current memory market conditions have moved beyond a simple recovery phase and entered a 'super cycle' phase centered on profitability. In particular, Samsung Electronics is evaluated as leading the improvement in market conditions based on its overwhelming production scale and price negotiation power in the DRAM and NAND flash markets. Meritz Securities analyzed that Samsung Electronics has adopted a profitability-oriented memory strategy, leading to earnings improvements across the entire industry.

2026 ROE Projected at 56%... High Capital Efficiency Forecasted Meritz Securities' target price of 420,000 KRW was calculated reflecting a 2026 estimated price-to-book ratio (PBR) of 4.0x and a sustainable return on equity (ROE) of 40%. Emphasizing high capital efficiency, Meritz Securities projected that Samsung Electronics' ROE will reach 56% in 2026, followed by 50% in 2027 and 37% in 2028.

Expectations for Non-Memory Business and Shareholder Returns Market interest extends beyond the memory business to focus on potential profitability improvements in non-memory sectors such as foundry, system semiconductors, mobile (MX), and displays. There are suggestions that strengthening the financial performance of these business divisions could lead to a re-evaluation of corporate value.

Furthermore, the potential expansion of shareholder return policies is being cited as a key investment point. Meritz Securities assessed that if explosive earnings growth is accompanied by an effective shareholder return policy, a stock re-rating could begin in earnest.

Industry-wide, as the trend of expanding artificial intelligence (AI) server investments and increasing demand for high-performance memory continues, it is highly likely that Samsung Electronics will consistently attract market attention until it reaches the peak of the memory cycle.

[This article was written with the assistance of AI. This article is intended to provide information for reference in making investment decisions and does not recommend the purchase or sale of specific stocks. Any losses arising from stock investments are the responsibility of the investor, and investment decisions must be made with sufficient review and under one's own responsibility.]