In today’s briefing:
- Near-Term Value-Up Plays in the Pipeline: Samsung Electronics & Kakao
- Why Amazon Issuing Stablecoins Could Negatively Impact Samsung Card’s Share Price
- SK Hynix, Micron HBM4 Qualification by Nvidia Is Done. Samsung Still Failing to Qualify with Nvidia
- Samsung Heavy Industries (010140.KQ) – Offshore Momentum, LNG Tailwinds Justify Premium
Near-Term Value-Up Plays in the Pipeline: Samsung Electronics & Kakao
- Local chatter’s building that Samsung Electronics and Kakao might drop value-up disclosures by end-June to mid-July, as both cozy up to the new administration and move into its inner circle.
- Jay Lee’s surprise solo meeting with President Lee marked a turning point, signaling Samsung’s intent to step out of SK’s shadow and take the lead under the new regime.
- Value-Up details aren’t final, but Samsung’s likely to reaffirm >35% payout, while Kakao’s set to focus on ROE improvement and multiple expansion.
Why Amazon Issuing Stablecoins Could Negatively Impact Samsung Card’s Share Price
- WSJ reported that Amazon and other major multinational in the US are actively considering on potentially issuing their own stablecoins. This could negatively impact card issuers such as Samsung Card.
- Once stablecoins are legally approved in South Korea and some of the major merchants in Korea start to use stablecoins, the current revenue streams of Samsung Card could get disrupted.
- Although the exact levels of revenue disruption still remain uncertain, many investors do not like uncertainty which means that some investors could start to reduce their holdings on Samsung Card.
SK Hynix, Micron HBM4 Qualification by Nvidia Is Done. Samsung Still Failing to Qualify with Nvidia
- 2025 GPU (Blackwell for Nvidia, MI350 for AMD) use HBM3e 12Hi. SK Hynix and Micron supply Nvidia, Samsung has failed qualification again. Micron and Samsung supply AMD.
- 2026 GPU (Rubin, MI400) use HBM4 12Hi. SK Hynix, Micron are qualified by Nvidia – that’s done. Micron is closing the gap with Hynix. Samsung still nowhere to be seen.
- Samsung got its consolation prize: AMD is using its HBM3e 12Hi in MI350. It looks like Broadcom will use Samsung’s HBM3e 8Hi in 2 projects (speculatively Apple and OpenAI).
Samsung Heavy Industries (010140.KQ) – Offshore Momentum, LNG Tailwinds Justify Premium
- SHI reported robust Q1 2025 results with revenue of KRW 2.49T (+6% YoY) and operating profit of KRW 123B (+58% YoY), reflecting improved offshore project execution and margin expansion.
- Management reiterated FY2025 guidance of KRW 10.5T revenue and KRW 630B operating profit, with offshore accounting for ~40% of new orders and a USD 9.8B full-year target
- With LNG carrier replacement demand, FLNG ramp-up, and leadership in eco-vessels, SHI’s earnings trajectory supports its 22x FY27E P/E, despite execution and competition risks.
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