The major leading global investment banking, securities, and investment management firm, Goldman Sachs Group has made an estimate about Samsung that its Operating Profit is to Drop in Q4 to 5.82 trillion won this year. Previously Goldman Sachs was a 7.8 trillion won estimation, which is going down year on year.
For the semiconductor business unit of Samsung Electronics, it lowered its estimate from 2.6 trillion won to 1.5 trillion won, down 83 percent from a year ago. Since 2009 the business unit’s quarterly operating profit has never been less than two trillion won. It is mentioned in the document maintained by Goldman Sachs that smartphone and TV demand contraction is attributable to the ongoing recession.
Nodding the same with the Goldman Sachs forecast, Samsung Securities also estimated to be 6.78 trillion won on Dec. 16 and Eugene Investment & Securities lowered its estimate to 6.5 trillion won on Dec. 20. Therefore, Goldman Sachs is not the only forecaster that is betting on a decrease in Samsung Electronics’ operating profit.
Lee Seung-woo, an analyst at Eugene Investment & Securities, said.
“Much of the impact from the expected slowdown in demand and the memory chip down cycle next year is already reflected in Samsung Electronics’ share prices.” “If companies continue to take proactive measures to reduce their chip inventories, it is likely that Samsung’s stock price next year will show a different trajectory than that of the past two years.”
In the same circumstances, the stock price of Samsung Electronics fell 1.51 percent to 58,600 won on Dec. 20. Likewise, that of SK Hynix fell 0.89 percent to 78,300 won. Despite this sullen forecast for next year, some local analysts pointed to the bright side, saying that a turnaround of the memory chip market will come in 2024.
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