KB Securities Keeps Samsung Electronics at $435, Sees $29 Billion Buyback and Cancellation This Year

KB Securities maintained its Buy rating on Samsung Electronics and kept its price target at 600,000 won ($435), saying the company could deliver both large shareholder returns and improved earnings. The brokerage said the stock could enter a full-fledged rerating phase if share buybacks and cancellations, along with cash dividends, are detailed this year.

In a Sept. 4 note, KB Securities analyst Kim Dong-won estimated Samsung has about 110 trillion won ($79.7 billion) in remaining funds available for shareholder returns over the next three years. On that basis, he said Samsung could pay a total of 70 trillion won ($50.7 billion) in cash dividends, with 30 trillion won ($21.7 billion) in the third quarter and 40 trillion won ($29 billion) in the fourth quarter. Separately, the company could buy back and cancel 40 trillion won ($29 billion) of its own shares.

KB Securities said Samsung's dividend yield in the second half could exceed 4%. It also said the payout benchmark in Samsung's next three-year shareholder return policy could rise from the current 50% of free cash flow.

KB Securities also projected strong earnings. It forecast Samsung's operating profit for the second half would jump 587% from a year earlier to 22.1 trillion won ($16 billion). If quarterly operating profit averages more than 10 trillion won ($7.2 billion), Samsung would extend record results for five consecutive quarters from the fourth quarter of 2025.

KB Securities said the memory market should also support earnings over the medium to long term. Memory shortages could last through at least 2028 as major Chinese technology companies including Baidu, Alibaba and Tencent, following Google and Amazon, seek long-term supply agreements.

Kim said a rising share of long-term contracts would spur more customer-specific capital investment, improving earnings visibility.

KB Securities said stronger earnings combined with large-scale shareholder returns could put Samsung into its strongest stock rerating cycle in a decade.