Samsung Electronics (005930.KS): Key takeaways from virtual meeting; reiterate positive view on the tight memory S/D and LTAs; Buy (on CL)

We hosted Samsung Electronics (SEC) for a virtual group meeting with investors on September 18. Key takeaways: 1) management reiterated its view that memory supply-demand conditions will remain tight, supported by solid demand momentum, low fulfillment rates, and demand carryover from 2026 to 2027; 2) incremental memory capacity allocation will remain focused on DRAM, particularly HBM, limiting capacity availability for other memory products; 3) conventional DRAM supply expansion faces structural constraints, as new capacity is increasingly allocated to HBM and higher-generation HBM requires greater wafer consumption due to larger chip sizes; 4) LTAs are becoming longer-term and more binding, supported by meaningful prepayments and deposits, which should enhance demand visibility, financial stability, and capex discipline — the remaining 30-40% of capacity not bound by LTAs will serve diverse applications such as mobile, PC, and non-AI customers;