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Photo = Samsung Electronics |
[Alpha Biz= Kim Sangjin] Samsung Electronics has emerged as the stock most heavily sold by foreign investors in the Korean stock market this year. With securities firms also lowering their target prices for the company, a recovery to the symbolic "60,000 won" level seems increasingly challenging.
According to data from the Korea Exchange on Thursday, foreign investors net-sold ₩10.4 trillion worth of Samsung Electronics shares from the start of the year to November 23.
The company’s stock price has been stagnant in the ₩50,000 range since September, as foreign funds continued to exit. On November 14, the stock briefly dipped into the ₩40,000 range for the first time in four years and five months, marking a significant drop since the COVID-19 era in June 2020.
Concerns about Samsung Electronics' competitiveness and uncertain performance have dented foreign investor confidence. The company has reportedly lost its lead in the global high-bandwidth memory (HBM) market, while Chinese competitors like CXMT (ChangXin Memory Technologies) and JHICC (Fujian Jinhua Integrated Circuit Co.) are undercutting D-RAM prices. These Chinese firms have priced their products at $0.75, a third of the market rate of $2.1, intensifying fears about Samsung's price competitiveness.
Securities firms have also been lowering expectations for the company’s performance. According to financial data provider FnGuide, Samsung Electronics' annual operating profit for next year is now projected at ₩41.4 trillion, a significant downgrade from ₩58.1 trillion three months ago and ₩44.2 trillion a month ago.
Since October 25, 11 securities firms, including Shinyoung, Hyundai Motor, Eugene, Yuanta, Kiwoom, NH, BNK, Hanwha, Daol, IBK, and iM Securities, have lowered their target prices for Samsung Electronics.
The challenges underscore heightened uncertainty around the company's recovery trajectory amidst growing competition and a tough market environment.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
