Nomura significantly raises its profit forecast for Samsung Electronics, with the operating profit in 2028 expected to exceed 77 trillion Korean won, as free cash flow surges in line with shareholder returns

BlockBeats News, August 2nd, Citrini analyst Jukan quoted a recent report from Nomura Securities, pointing out that Samsung Electronics' operating profit forecast has been significantly raised. Nomura expects Samsung's operating profit to increase from the current approximately 39.1 trillion Korean won (about $271 billion) to 63.5 trillion Korean won (about $440.1 billion), further climbing to 77.4 trillion Korean won (about $536.4 billion); free cash flow is also projected to rise from 29.6 trillion Korean won to 45.6 trillion Korean won and then to 56.3 trillion Korean won; the shareholder return rate is set to jump from 11.2% to 17.6% and eventually reach 22.3%. The operating profit and profit margin of DRAM and NAND are expected to continue to rise significantly in the coming years.

This upward revision is in line with Bank of America Merrill Lynch's previous research conclusion. Samsung Electronics has already included 60% to 70% of its memory sales in long-term supply agreements with contract terms that "limit downside and not limit upside," effectively locking in demand from major customers and retaining price hike flexibility. Against the backdrop of the continued AI capital expenditure surge and constrained storage capacity release, the strong prices of DRAM and NAND are directly translating into Samsung Electronics' profit elasticity and cash flow return. Nomura's forecast supports this logic.