Samsung Just the Beginning
Samsung: Just the Beginning...
SEPTEMBER 2012
Winning the scale wars on all fronts — handsets, TVs, semis, display — and taking no prisoners
Samsung Electronics remains the "Jewel of the Samsung Empire" and its long-term success is well aligned with the owner-founder Lee family — Corporate governance concerns are therefore overdone; we see three engines driving 161% EPS growth in '11- '14: Handsets, Semis & Display
The smartphone market is bifurcating into premium and low end, with Samsung strong in both
— Samsung 's Galaxy S3 and Note are taking share in the premium segment despite Apple 's best efforts to derail — this is driving improved mix, higher margins, and a tripling in handset profits
As one of the few long-term survivors in semiconductors, Samsung will continue to extend its leadership in memory as process migration becomes more difficult and challenge Intel, TSMC, and Qualcomm as the only integrated device manufacturer in the ARM camp
Even taking into account the worst "global thermonuclear" case in litigation tussles with Apple,
Samsung is still undervalued; we rate Samsung outperform with a price target of KRW 2.1 million, which implies 57% potential upside from the recent stock price
SEE DISCLOSURE APPENDIX OF THIS REPORT FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS
SAMSUNG: JUST THE BEGINNING...
1
Portfolio Manager 's Summary
Investors often complain that there are not enough choices in tech-land as Samsung and Apple continue to dominate the growth in electronics devices due to success in smartphones and tablets. Samsung Electronics, even more so with its internally sourced components, is creating havoc for many competitors, from handset and consumer electronics makers to component and semiconductor companies.
Samsung has a truly unique position in the IT space as the company has become a "total solution provider" to customers. Samsung is strong in Handsets, Memory,
Logic semis, Displays, and TVs.
SEPTEMBER 2012
Winning the scale wars on all fronts — handsets, TVs, semis, display — and taking no prisoners
Samsung Electronics remains the "Jewel of the Samsung Empire" and its long-term success is well aligned with the owner-founder Lee family — Corporate governance concerns are therefore overdone; we see three engines driving 161% EPS growth in '11- '14: Handsets, Semis & Display
The smartphone market is bifurcating into premium and low end, with Samsung strong in both
— Samsung 's Galaxy S3 and Note are taking share in the premium segment despite Apple 's best efforts to derail — this is driving improved mix, higher margins, and a tripling in handset profits
As one of the few long-term survivors in semiconductors, Samsung will continue to extend its leadership in memory as process migration becomes more difficult and challenge Intel, TSMC, and Qualcomm as the only integrated device manufacturer in the ARM camp
Even taking into account the worst "global thermonuclear" case in litigation tussles with Apple,
Samsung is still undervalued; we rate Samsung outperform with a price target of KRW 2.1 million, which implies 57% potential upside from the recent stock price
SEE DISCLOSURE APPENDIX OF THIS REPORT FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS
SAMSUNG: JUST THE BEGINNING...
1
Portfolio Manager 's Summary
Investors often complain that there are not enough choices in tech-land as Samsung and Apple continue to dominate the growth in electronics devices due to success in smartphones and tablets. Samsung Electronics, even more so with its internally sourced components, is creating havoc for many competitors, from handset and consumer electronics makers to component and semiconductor companies.
Samsung has a truly unique position in the IT space as the company has become a "total solution provider" to customers. Samsung is strong in Handsets, Memory,
Logic semis, Displays, and TVs.
References: which is a licensed entity under the Securities and Futures Act and registered with Company Registration No. 199703364C, collectively. stock of the following companies 005930.KS / Samsung Electronics, 005935.KS / Samsung Electronics.