Mark Artherton, CFA

Inteqres

Equity Bottom-Up

<p>Samsung Electronics is a key play on the roll-out of 5G handsets and network equipment.  The impact from the 5G roll out comes from improved conditions for DRAM/NAND volume and pricing as well as network hardware and handset sales.  This catalyst has been playing out for several months and we would continue to ride this in the near future (notwithstanding concerns over coronavirus) but we struggle to see much more in the way of additional catalysts for the Samsung Electronics share price.</p>
<p>In the absence of significant other catalysts, we believe that the Samsung share price really will run out of steam over the next few months.  We remain positive but will look to trim overweight positions. </p>

Samsung Electronics is a key play on the roll-out of 5G handsets and network equipment.  The impact from the 5G roll out comes from improved conditions for DRAM/NAND volume and pricing as well as network hardware and handset sales.  This catalyst has been playing out for several months and we would continue to ride this in the near future (notwithstanding concerns over coronavirus) but we struggle to see much more in the way of additional catalysts for the Samsung Electronics share price.
In the absence of significant other catalysts, we believe that the Samsung share price really will run out of steam over the next few months.  We remain positive but will look to trim overweight positions. 

Samsung Electronics Initiation - Expectations Close to Running Too High - Inteqres Practical Views