Goldman Sachs: Raise the target price of Tristar electronics to 490,000 won with the expectation that the storage demand will greatly exceed supply

ON 3 AUGUST, GOLDMAN SACHS PUBLISHED A STUDY INDICATING THAT THE SECOND SEASON OF BUSINESS PROFITS FOR SAMSUNG ELECTRONIC WAS IN LINE WITH EXPECTATIONS AND THAT THE BANK HAD INCREASED ITS FORECAST OF PROFITS PER SHARE BY ABOUT 2 PER CENT BETWEEN 2026 AND 2028 AND HAD INCREASED THE TARGET PRICE FOR 12 MONTHS FROM 480,000 WON TO 490,000 WON. THE BANK EXPECTS THAT THE DEMAND FOR STORAGE WILL GREATLY EXCEED SUPPLY, THAT THE GAP WILL WIDEN IN 2027 AND THAT SUPPLY WILL REMAIN TIGHT IN 2028. ACCORDING TO GOLDMAN SACHS, THE COMPANY HAS LONG-TERM AGREEMENTS WITH CUSTOMERS AT THE MAIN DATA CENTRE, WHICH WILL PROVIDE BETTER PROFITABILITY AND LOWER-LEVEL PROTECTION. IN ADDITION, HBM4 AIMS TO BE THE MARKET LEADER FOR THE AI REPOSITORY, WHICH IS EXPECTED TO ACCOUNT FOR MORE THAN 60 PER CENT OF HBM REVENUES IN THE SECOND HALF OF 2026, AND EXPECTS A SIGNIFICANT UPTURN IN SHAREHOLDER RETURNS. THE UNIT IS CURRENTLY TRADING AT A PROJECTED RATE OF 3.1 TIMES THE MARKET RATE AND 1.2 TIMES THE MARKET RATE IN 2027, WITH A RETURN ON SHAREHOLDERS OF NEARLY 50 PER CENT。