Headline: Rosy outlook is waiting for Samsung Electronics in 2022

Samsung Electronics (KRX: 005930) is setting revenue records, according to financial reports for the fourth quarter and fiscal 2021, setting the tech company for more growth in 2022.

Financial information company FnGuide forecasts for Samsung this year will be 306.1988 trillion KRW in sales and 58.291 trillion KRW in operating profit. In addition, sales are expected to surpass 300 trillion KRW, the highest ever for the second consecutive year.

“Samsung Electronics’ earnings could meet market expectations in the first quarter. Estimates of operating profit for each division are 7.6 trillion KRW for semiconductors, 600 billion KRW for displays, 3.6 trillion KRW for IT and mobile (IM) and 700 billion KRW for consumer electronics (CE),” Eo Gyu-Jin, a DB financial investment researcher, said.

Samsung hasn’t yet elaborated on its plans for this year, but the company has said it would aggressively invest in semiconductor facilities as it did last year. Samsung officials have said they expect the release of the new smartphone model, Galaxy S22 and IT and mobile (IM) to improve performance.

“The effect of a new smartphone model amid a reversal in the memory industry will also serve as a positive factor,” said Seo Seung-Yeon, a researcher at Shinyoung Securities. “In the first quarter, sales will rise 17 % year-on-year to 76.2 trillion KRW and operating profit will rise 35 percent to 12.7 trillion KRW.”

Samsung’s stock price even fell from 100,000 KRW to 70,000 KRW due to disappointment from investors. But semiconductor companies strived to manage inventory and overcame it faster than expected. Considering semiconductors account for a large proportion of its overall performance, the chances that Samsung Electronics will hit its maximum performance again this year are growing.