FDA Panel Backs Grail Cancer Test, Lifting Samsung Bets

South Korea's KOSPI index fell below 7,000 after the Chuseok holiday, driven by selling from foreign and institutional investors, particularly in semiconductor stocks like Samsung Electronics and SK Hynix. The index dropped 1.16% to 6,998.62. Samsung Electronics shares declined 2.10%, while SK Hynix fell 2.69%. Other sectors showed mixed performance, with chemicals and telecommunications gaining. The KOSDAQ index rose 1.88% to 860.39.

Samsung Electronics forecasts Q3 revenue of ₩200.279 trillion and operating profit of ₩106.9887 trillion, more than double last year's annual profit. The memory division, particularly DRAM and NAND, is driving this growth, with price increases and high profitability. HBM4 mass production is boosting competitiveness, while non-memory sectors face deficits.

Analysts at Yuanta Securities and Kiwoom Securities issued diverging target prices for Samsung Electronics (005930) after its Q3 earnings. Yuanta raised its target to 630,000 won, citing a prolonged upcycle, while Kiwoom maintained its target at 350,000 won, forecasting a decline in memory chip prices. Both agree on Q3 earnings but differ on 2024 outlooks, with Yuanta projecting a 65% increase and Kiwoom a 5% decline in operating profit.

Samsung Electronics is projected to report a record quarterly operating profit of 107.7 trillion won, a 20.3% increase from the previous quarter, according to analysts. The company's semiconductor division is expected to achieve a 72–75% operating margin, with DRAM margins potentially exceeding 80%. TrendForce forecasts a 13–18% rise in DRAM prices for the third quarter.

Samsung Electronics is expected to report a record quarterly operating profit of 107.7 trillion won, up 20.3% from the previous quarter, driven by strong DRAM margins. Analysts attribute this to a shift in production capacity towards high-bandwidth memory and server products, tightening supply and extending delivery times. DRAM prices are forecast to rise 13-18% on-quarter, though this is a slowdown from the prior quarter's 60% increase.

Samsung Electronics (005930) preferred shares rose 15.34% in September, outperforming common shares at 9.00%, due to dividend and share-cancellation expectations. Analysts cite the company's 90-110 trillion won shareholder return plan. Top asset managers recommend semiconductor ETFs for long-term growth. OECD raised Korea's 2023 growth forecast to 3.7%, citing semiconductor exports and capital investment.