Samsung Electronics Co Ltd should surge 38% in its second-quarter profit. The surge should come due to high chip prices and huge sales of household appliances. In addition, the projected rise might also be attributed to its recovering investments in data centers. The South Korean tech giant should release its preliminary second-quarter results on Wednesday, July 7.
An analyst estimated that Samsung’s earnings consensus from April to June is ₩61.44 trillion in sales and ₩10.74 trillion in operating profit. He added that this would likely be a 16% and 31.9% growth year-on-year, respectively.
Samsung dominates the global DRAM and NAND flash markets. Hence, a market tracker stated that the fixed price of PC DRAM was $3.8 as of April. It was a 26.67% rise from May.
The NAND flash fixed price in April was $4.56, which is up 8.57% in May. However, in the following month, both chip’s prices flattened. Due to these rises, the company should greatly benefit from the increase of semiconductor prices backed by the demand for network equipment.
Another analyst accounted for Samsung for 42% of the global DRAM market and 33.5% of the NAND flash market based on its first-quarter sales.
In addition, the company’s non-memory earnings should recover at its chip-contract manufacturing and logic chip design business. This was followed by the normalization of operations in May at its fabrication plant in Austin, Texas, after it was shut down last first quarter due to an unseasonal snowstorm.
Samsung’s semiconductor transactions should have accounted for over ₩6 trillion out of a total second-quarter operating profit of ₩11 trillion.
Its display business should show earnings growth based on a rise in the price of liquid crystal display (LCD) panels.
Samsung SDI EV Battery Profit
LG Energy Solutions Ltd released its battery profit sales. Hence, in the second quarter, Samsung Electronics’ subsidiary, Samsung SDI, moved up to second after.
Analysts expect that Samsung SDI will report ₩252.7 billion ($223.7 million) in operating income over revenue of ₩3.4 trillion in Q2, which ended last June 30. In addition, its operating income and revenue should climb 143.3% and 31.7%, respectively, from 2020.
Moreover, the firm should gather its Q2 profit from medium and large-sized rechargeable battery businesses responsible for electric vehicles (EV) and energy storage systems (ESS).
Furthermore, analysts expect that this year, the company’s energy business will be focusing more on EV batteries and ESS, which will outperform its electronic materials business.