Is the semiconductor business a drag bottle? Samsung Electronics will rely on the display business to turn over in the second half of the year

Core Technology News, Samsung Electronics released its preliminary earnings report on the 5th, with a profit of 6.5 billion won, compared with the same period last year, the decline was as high as 56.29%. The Korean media "Korean Daily" pointed out that the decline in memory prices is the main cause of the sluggish semiconductor industry, the second half The recovery in OLED demand is expected to drive Samsung Electronics to make a profit.

Samsung Electronics’ initial revenue for the second quarter was 56 trillion won and its profit was 6.5 billion won. With the deepening of trade disputes between China and the United States, the demand for semiconductors has declined, which has caused the price of DRAM and NAND flash memory of Samsung Electronics to decline. The Korean securities industry analyzed that the profit of the semiconductor division in the second quarter of last year was 1.16 billion won. It is only about 3 trillion won, shrinking by more than 70%, affecting Samsung Electronics' overall profitability.

Since the beginning of this year, DRAM prices have fallen by more than half. The market research company DRAMeXchange issued an emergency report last month, pointing out that it will fall 15% in the third quarter and another 10% in the fourth quarter.

The outlook for the semiconductor business in the second half of the year is full of uncertainty. Although the Korean securities industry is happy to watch, the semiconductor sector may not be able to quickly recover in the second half of the year. This year, KTB Investment Securities researcher Jin Liangzai predicted that as the semiconductor industry actively adjusts supply and demand, inventory begins to digest, and it is expected to resume the first quarter of next year.

"Korea Economy" report pointed out that modern securities researcher Lu Genchang (transliteration) analysis, Japan's restrictions on exports have a positive impact on the price of Samsung's memory products, if Japan restricts trading hours, the side effects caused by skyrocketing memory prices are too large, Japan's Trading restrictions are not expected to last long.

Compared with the Samsung Electronics Semiconductor business, other departments have relatively good defense. In particular, the first quarter of the loss display sector in the first quarter, the second quarter benefited from the increase in demand for OLEDs from Chinese smartphone companies. This quarter's profitability turned into a loss of 500 billion won, which is Samsung's 6 trillion won. One.

The profit of the smartphone business is about 2 trillion won, which is lower than the same period last year (2.6 trillion won). The Korean securities industry believes that the sales volume of the flagship Galaxy S10 series in the first half of the year has rebounded, but it has not reached expectations. However, the high-priced Galaxy A series has created high popularity, but it cannot improve the mobile phone ASP (average sales price).

The second half is expected to increase Samsung Electronics' profitability - the display division. Jin Yunhao, an IBK investment securities researcher, expects that the demand for curved OLEDs will increase significantly in the second half of the year compared with the first half of the year. The general OLED screens are not only widely used in low-end mobile phones in South Korea, but China continues to increase demand. The operating rate for the season is about 100%.

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