Samsung Electronics, SK Hynix Earnings Forecasts Raised as Taylor Plant Ramps Up
Despite the negative backdrop of surging US Treasury yields and a weaker won, earnings consensus for Samsung Electronics and SK Hynix is rising rather than falling. The market's annual operating profit forecast for Samsung Electronics has climbed from around 101 trillion won three months ago to 112.8415 trillion won recently, an upward revision of more than 12 trillion won. SK Hynix's forecast has likewise risen from 75 trillion won three months ago to 78.1291 trillion won currently. The sharp rise in memory chip prices was cited as the key driver behind the upward earnings revisions.
Samsung Electronics' foundry plant in Taylor, Texas, originally targeted for full-scale operation in November, has reportedly already begun trial production as customer demand to secure supply has intensified. The company plans to complete mass-production verification by year-end and begin full-scale product supply starting next year, with the Taylor plant's utilization rate currently known to be approaching 30%. If the pace of the utilization rate increase accelerates, the timing of the foundry division's turn to profitability could also be moved up. That said, some analysis suggested that the foundry division's return to profitability in the third quarter could be difficult given the depreciation expenses associated with the Taylor plant.
Apple has reportedly agreed to accept memory pricing from Samsung Electronics that is roughly 30 to 40% higher in the first quarter of next year compared with the third quarter of this year. Given that Apple had reportedly explored sourcing memory from Chinese suppliers recently, the outcome is being interpreted as Apple ultimately accepting the price increase terms set by Samsung. Because Apple products such as the iPhone contain numerous Samsung Electronics components, including substrates, displays, and memory, this price adjustment is being read as reflecting both a decline in Apple's negotiating leverage and an improvement in Samsung Electronics' profitability.
A report indicated that the timing of an initial public offering (IPO) for Boston Dynamics, in which Hyundai Motor has invested, could remain uncertain even through 2027. The key factor is support for large-scale mass production of the Atlas humanoid robot — the company would need to begin generating profit through mass production for its corporate value to peak, enabling an IPO, but that timing appears likely to be pushed back. The report cited remarks from a senior company executive who spoke on condition of anonymity, and noted that other humanoid robot projects, including Tesla's Optimus, are also seeing slower-than-expected progress toward mass production, fueling analysis that the timeline for commercializing humanoid robots is being delayed industry-wide.
Power equipment and cable-related stocks also stood out with gains. Shares related to LS Group affiliate LS Eco Energy jumped from the morning session on news that the company, in collaboration with Gaon Cable's US subsidiary, had recently completed supply of underground cables to a large-scale US solar power plant. The power equipment theme has recently been moving in tandem with issues surrounding US-bound investment and the energy value chain, warranting continued attention.