Samsung Electronics (005930) Q4 2023 earnings summary

Executive summary

• FY23 sales were KRW 258.94T, operating profit KRW 6.57T and net profit KRW 15.49T; Q4 operating profit rose QoQ to KRW 2.82T.

• Memory demand and inventory normalization supported a return to DRAM profitability, while 2024 priorities include premium products tied to AI-related demand.

Financial highlights

• 4Q23 sales were KRW 67.78T, gross profit KRW 21.66T and operating profit KRW 2.82T; gross margin was 32.0% and operating margin 4.2%.

• 4Q23 net profit was KRW 6.34T, profit attributable to owners of the parent KRW 6.02T and EPS KRW 887.

• FY23 sales were KRW 258.94T, operating profit KRW 6.57T, net profit KRW 15.49T and EPS KRW 2,131.

Outlook and guidance

• 1Q24 memory strategy centers on profitability and high-value products such as HBM3 and Server SSD; advanced-product market bit growth is expected to be constrained.

• For 2024, memory demand is expected to recover despite volatility; plans include expanding HBM via increased TSV capacity and timely HBM3E and Gen 5 SSD production.

• MX aims to grow flagship shipments by over 10% in 2024 and lead the AI smartphone market; Networks targets growth through overseas contracts and 5G technology leadership.

• SDC expects 2024 smartphone-market headwinds, while TV demand may improve with sporting events and low-base effects; QD-OLED monitors and efficiency are key priorities.

• Foundry expects market recovery toward 2022 levels in 2024, with focus on 3nm mass production, 2nm development and orders in high-growth areas such as AI accelerators.