Samsung's DRAM chip profit soars | Q1 profit is expected to reach 13.7 billion U.S. dollars

According to foreign media reports, due to the unprecedented rebound in the global memory chip market, exceeding the slowdown in the sale of smart phones and related components, Samsung Electronics expects that the first quarter earnings announced on Friday will increase by nearly 50%. Samsung Electronics's main business Semiconductor revenue will account for nearly three-quarters of its total operating profit. Analysts expect that for DRAM chips, Samsung will earn approximately 70 cents in operating profit for every dollar it sells.

Lee Jae-yun, South Korea analyst at Yuanta Securities, said: 'Although the price of memory chips is expected to slow down from last year's boom period, the increase in shipments and cost reduction will further boost the profit growth of Samsung's semiconductor business and make profits. Raised to another record year. 'Thomson Reuters survey shows that the world’s largest semiconductor and smartphone manufacturer expects operating profit for Q1 to increase by 46% this year to 14.5 trillion won, or about 13.7 billion won. Dollars.

In contrast, operating profit for the same period last year was 9.9 trillion won, but lower than the quarterly profit of 15.15 trillion won in the previous quarter.

Samsung Electronics will release its performance guide on Friday and will release details of its performance later in April.

Analysts said that strong demand for DRAM offset the impact of falling NAND chip prices, Samsung Electronics' chip business may report operating profit of approximately 10.7 trillion won.

Research provider WitsView analyst Julian Lee said that Apple's iPhone X sales were lower than expected. Apple purchased only 60-65% of its original purchase plan in 2018, which led to Samsung’s OLED panel shipment forecast. Have dropped.

Samsung is famous for its exclusive supplier of high-end smartphone OLED screens.

According to Strategy Analytics, Samsung’s mobile phone business accounts for about 40% of Korean company’s revenue. Samsung shipped 9.3 million Galaxy S9 smartphones globally in the first quarter.

Analysts said that the early market had a good response and sales were similar to last year's S8.

The Galaxy S9 was sold in most markets in mid-March this year and may have a considerable impact on first-quarter profits because its sales in 2018 were a full 5 weeks earlier than the 2017 S8.

Samsung Electronics' stock price has fallen by about 7% so far this year, reaching a record of US$ 28.76 million in November last year, due to market concerns about the downturn in the smart phone market and concerns about the subsequent decline in demand for components.

Analysts said that the stock will suspend trading between April 30 and May 3 in order to achieve the planned 50:1 split of shares, which will increase the market capital of retail investors entering the stock.