Samsung Posts Record Profit, Yet Target Prices Keep Getting Cut
Samsung Electronics reported operating profit of roughly 57 trillion won in the first quarter and about 89 trillion won in the second — both record highs for consecutive quarters. Even so, the share price fell sharply, with some arguing the results were 'already priced in' or 'a one-off that won't last.' The hosts countered that back at the start of the year, nobody had predicted Samsung would earn 89 trillion won just six months later.
Kiwoom Securities became the first Korean brokerage to cut its Samsung target price, lowering it from 430,000 won to 390,000 won. The rationale cited slowing second-half EPS growth, fading expectations for HBM4 market-share gains, and rising competition from Chinese memory makers — all of which could widen share-price volatility.
The hosts conceded the logic itself was reasonable — triple-digit-percentage profit growth every quarter was never going to be sustainable forever. But they drew a line between 'fact' and 'truth': if a child brings home a perfect score, a parent can't reasonably demand 120 points next time before handing over allowance. Likewise, as long as Samsung keeps posting roughly 100 to 112 trillion won in quarterly operating profit through the third and fourth quarters, the stock still looks cheap at today's valuation.
On the very same day, Hyundai Motor Securities analyst Roh Geun-chang kept his target price at 440,000 won in a report humorously titled 'earning too much and rising too much is the only original sin,' arguing that the ongoing AI-transition supercycle should keep profits at this elevated level. The market, in effect, is split between a 'growth-deceleration' camp and a 'profit-durability' camp.
Trading action that day reflected the split — SK Hynix jumped more than 3%, while Samsung Electronics slipped about 2%, barely holding the 290,000-won line.