[EQUITIES] Hanwha Securities cuts Samsung’s Q3 earnings estimate

[THE INVESTOR] Hanwha Investment and Securities on Sept. 6 cut its estimate of Samsung Electronics’ third-quarter operating profit to 7.7 trillion won (US$7 billion) from the previous 8.5 trillion won.

The mobile business division is expected to see a 900 billion won reduction in operating profit following the Galaxy Note 7 recall worth 700 billion won and the sales suspension for the two weeks,” said Lee Soon-hak, an analyst at the securities firm.

“But the company’s chip business division will see an additional 200 billion won in operating profit thanks to increased shipments.”

Despite the unexpected recall decision of the Note phone, the analyst predicted the company would see strong earnings in the coming months largely due to upbeat sales of memory chips and organic light-emitting diode display whose demands continue to soar.

The analyst added the company’s stock price will be adjusted depending on market reaction to its archrival Apple’s new iPhone launch planned on Sept. 7.

As of 10:07 a.m., the stock was trading at 1,617,000 won, up 0.68 percent from the previous trading day.

By Lee Ji-yoon (jylee@heraldcorp.com)