Samsung Electronics Co Ltd is likely to post a record fourth-quarter profit thanks to solid demand for server memory chips and higher margins in contract manufacturing, analysts’ estimates showed. Operating profit for the world’s biggest memory chip and smartphone maker likely hit 15.2 trillion won ($12.7 billion) in the quarter ended December, according to a Refinitiv SmartEstimate from 14 analysts, weighted toward those who are more consistently accurate. That would be up 68% from 9.05 trillion won a year earlier and narrowly beat the previous Q4 record profit of 15.15 trillion won reported in 2017.
Samsung Electronics’ shares have climbed about 12% in the last two months in anticipation of higher memory chip prices this year, boosted by new data centres and demand for videos, games, conferencing and other streaming services.
“Contrary to previous concerns, the semiconductor industry is likely to see demand increase significantly from customers in both memory and non-memory sectors,” said Jeff Kim, analyst at KB Securities.
