Samsung Electronics Co is bound to reach a record-high operating profit by the final quarter of 2017. A financial information services company in South Korea expects the tech giant to haul SKW15.5tn (around US$13.6bn).
FnGuide Inc on Sunday released a report predicted that the South Korean tech giant would hit US$13.6bn in profit from October to December. The report is based on the evaluation made by 23 local brokerages.
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According to the report, the semiconductor business of Samsung is the primary contributor in profit surge which is believed to continue until the year ends once the company meets market expectations. The predicted US$13.6bn is said to surpass the third quarter forecast of US$12.1bn.
HMC Investment and Securities analyst Roh Geun-chang stresses the high demand for memory chips continue to soar as many partner companies have sought long-term supply contracts lasting up to six months.
"Judging by a rise in demand, Samsung operating profits could rise as high as 16.4 trillion won," says Roh.
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Hanwha Investment and Securities Co has a similar viewpoint, emphasising the lack of downward price pressure on NAND and DRAM chips and the double increase in shipments of semiconductors in the next few months. It adds that Samsung will gain most of its profits, estimated at US$10.6bn, from the semiconductors alone during the fourth quarter.
