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Samsung SDS Jamsil headquarters. (Photo=Samsung SDS) |
[Alpha Biz=(Chicago) Reporter Paul Lee] KB Securities analyzed on the 19th that Samsung SDS (Samsung SDS) is expected to increase corporate demand due to the high growth of cloud business and the launch of generative artificial intelligence (AI) services. In the meantime, it maintained its target stock price of 200,000 won and investment opinion 'buy'. Samsung SDS's closing price for the previous trading day was 157,000 won.
KB Securities cited three factors for Samsung SDS's investment. First, profitability is expected to improve as the business portfolio changes around the cloud business. Samsung SDS's cloud service provider (CSP) business, which provides computer resources among the cloud business, is expected to grow rapidly this year following last year due to the rapid increase in utilization rate.
KB Securities said, "Samsung SDS's CSP sales this year are expected to be 821.8 billion won, up 31% from the previous year." Researcher Kim also predicted that Samsung SDS's cloud management service provider (MSP) business will benefit from the growing demand for multi-cloud management.
With the release of generative AI, corporate demand is also expected to increase. It is heard that Samsung SDS's generative AI 'FabriX' will be released this month. FabriX is a machine learning operation (MLOps) solution that adopts the best generative AI model for the enterprise and enhances the model among various generative AI solutions that can be used in cloud form.
In addition, with the government's recent corporate value-up program, KB Securities diagnosed that the value of cashable assets held by Samsung SDS is increasing. As of the end of the fourth quarter of last year, Samsung SDS had KRW 5.5 trillion in cashable assets, or 44.6% of its total assets.
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
