HSBC: Tristar electronics or will continue to build up the momentum of performance

On 9 July, HSBC indicated that the high price of storage chips was likely to continue to drive a record performance of Tristar electronics. Analysts Ricky Seo and Han Kil Chang projected that, driven by a 20 per cent increase in sales, the third quarter of Samsung electronics would see a 25 per cent round increase in business profits. The driving factors include an expected 15 per cent increase in the price of DRAM and NAND chips, the OLED panel demand at the time of the release of the new folding screen phone, and the upturn in the profitability of smartphones. HSBC analysts say that, against the backdrop of the unlikely short-term slowing down of computing expansion for cloud service providers, the profits of Samsung electronics could increase more than eightfold this year, reaching 37.6 trillion won, with a further 37 per cent increase next year. HSBC maintains its purchase rating and the target price of 450,000 won. Kim Xian