À̹ÌÁö È®´ë Samsung Electronics building in Seoul [Photo by Kim Ho-young]
Samsung Electronics Co., the world¡¯s largest memory chip maker, may log its first-ever quarterly operating loss for the first quarter amid growing concerns over a slump in the global chip industry.
In a recent report, Daol Investment & Securities Co. projected that Samsung Electronics will log an operating loss of 68 billion won ($52.4 million) in the January-March period. It is the first report that projects an operating loss for Samsung Electronics - not limited to its chip business.
The tech company has never reported a quarterly operating loss in the last 14 years since the first quarter of 2009 when reports of quarterly performance became available to the public.
Daol Investment & Securities projected Samsung Electronics to raise 61.3 trillion won in revenue in the first quarter, down 21.1 percent from the same period a year ago. It also estimated the chip business to suffer 4.1 trillion won in operating loss due to the fallout of inventory valuation losses in the memory sector.
¡°The inventory turnover in the memory sector is estimated to have increased to 6 months,¡± said Kim Yang-jae, a researcher at Daol Investment & Securities. ¡°Shipment growth of DRAM and NAND flash chips is projected to fall by 15 percent and 10 percent, respectively, and average unit sales price 21 percent and 23 percent.¡±
Other brokerage houses, in the meantime, are revising down their earnings for Samsung Electronics¡¯ chip business.
Shinhan Securities Co. projected Samsung Electronics to post an operating profit of 700 billion won for the first quarter, down 82 percent from the previous quarter, which is sharply below the market consensus of 1.7 trillion won.
Korea¡¯s eBest Investment & Securities Co. also adjusted down its operating profit forecast to 100 billion from 1 trillion won in a previous report. The securities firm said that Samsung Electronics will likely post up to 4.3 trillion operating loss from the chip business.
Analysts, however, noted that Samsung Electronics¡¯ earnings will rebound in the second half of this year.
Daol Investment & Securities projected that the operating loss will be narrowed as the production cuts by chipmakers begin to reduce inventories. It maintained its target price for Samsung Electronics at 71,000 won and ¡°buy¡± opinion on the stock.
¡°Samsung Electronics boasts a staggering capital capacity that enables the company to prepare for the next steps in the current industry slump,¡± said Ko Young-min, an analyst at Shinhan Securities Co., which presented the company¡¯s target price at 82,000 won.
Ko expected the chip industry to recover in the fourth quarter of this year when demand for system chips rises.
Shares of Samsung Electronics were trading 0.33 percent higher at 61,300 won on Thursday morning.
By Kim Je-gwan and Han Yubin
[¨Ï Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]