Key Details of Samsung Electronics’ Financial Outlook for 2024

Samsung Electronics is projected to see an annual operating profit of approximately KRW 34 trillion in 2024, falling short of market expectations due to delays in high-bandwidth memory (HBM) supply for major clients like NVIDIA and continuing losses in the foundry business. Despite these challenges, annual revenue is expected to recover to over KRW 300 trillion for the first time in two years.

1. 2024 Performance Projections:

   • Samsung’s expected annual revenue: KRW 303 trillion (17% YoY increase).
   • Expected annual operating profit: KRW 34 trillion, up significantly from KRW 6.5 trillion in 2023, primarily due to a rebound after the KRW 14 trillion semiconductor deficit in 2023, marking the lowest profitability since the 2008 financial crisis.

2. 4Q 2024 Results:

   • Revenue expected at KRW 77.95 trillion (15% YoY increase, but 1.4% QoQ drop).
   • Operating profit: KRW 8.55 trillion (202% YoY increase, but 6.8% QoQ decline).
   • The DS (Device Solutions) segment saw declining results primarily due to falling legacy memory prices and delayed HBM supply.

3. Major Challenges in DS Segment:

• HBM production delays for NVIDIA impacted supply growth by 20%.
• Lower prices for DRAM and legacy memory products.
• Losses in foundry and System LSI businesses due to weak demand and rising costs.

4. Impact on Subsidiaries:

   • Samsung Display saw significant revenue drops due to increased OLED price competition from Apple product supply diversification.
   • Harman International maintained stable performance, while the mobile division saw slight declines in profitability.

5. Future Outlook:

   • Semiconductor legacy products and low-end hardware demand are expected to remain weak into 2025.
   • Despite headwinds in foundry and deflation in memory pricing, the company aims to improve cost structures in non-memory areas, but significant profitability challenges from 2024 are unresolved.

< Summary >

• Forecasted Operating Profit Dip
  Samsung anticipates a 34 trillion KRW operating profit for last year, hindered by delayed HBM supply to NVIDIA and foundry losses. Annual revenue reaches 300 trillion KRW range.

• 2024 Growth Outlook
  Revenue (303 trillion KRW) and operating profit (34.8 trillion KRW) expected to rise due to recovery from 2023’s 14.8 trillion KRW semiconductor loss.

• Q4 2024 Performance

Operating profit predicted at 8.5 trillion KRW with reduced DS division profitability, DS losses (-3.8 trillion KRW), and impact from DRAM price drops.

• Other Divisions
  Display profit falls over OLED pricing competition; Harman maintains stable performance. Display division faces competitive pricing pressures driven by North American customers like Apple.

< 핵심내용 요약 >

• 예상 영업이익 하락
  삼성전자는 지난해 영업이익 34조 원 수준으로 전망; NVIDIA로의 HBM 공급 지연 및 파운드리 손실이 원인. 매출은 300조 원대 회복.

• 2024년 성장 전망
  매출 303조 원, 영업이익 34.8조 원으로 2023년 반도체 손실(14.8조 원) 회복 영향으로 크게 증가.

• 2024년 4분기 실적

4분기 영업이익 8.5조 원 예상, DS 부문 영업손실(-3.8조 원) 및 D램 가격 하락 영향.

• 기타 부문 실적
  디스플레이 부문은 OLED 가격 경쟁으로 수익성 하락; 하만은 3천억 원 수준 유지. 애플 등 북미 고객사의 OLED 패널 수익성 악화가 원인.

• Crafted by Billy Yang
  [관련글 at nextgeninsight.net/]
  Korean Economy Crisis & Innovation Solutions
  2024 Economic Review & 2025 Outlook