(April 4): Samsung Electronics Co’s profit was probably held back by a loss in the foundry business, as the company works to catch up in artificial intelligence (AI) memory chip development, while US export restrictions contributed to lower semiconductor shipments to China.

The South Korean electronics giant likely saw its first-quarter operating profit slump more than 20%, according to Bloomberg Intelligence (BI). DRAM chip shipments and average selling prices might have fallen sequentially, BI added. 

“Samsung will be more impacted by general memory price erosion,” Morningstar Research director Kazunori Ito said. 

Looking ahead, investors expect conventional memory prices to decline by a smaller margin in the second quarter, before reaching a positive inflection in third quarter, Goldman Sachs analysts including Giuni Lee wrote in a note. That has led to raised price targets for South Korean chipmakers recently. 

US President Donald Trump’s efforts to bring manufacturing back to US shores pose a risk to South Korean companies, which are deeply embedded in global supply chains and heavily reliant on exports.

In Japan, Seven & i Holdings Co, Ltd may continue to disappoint while newly appointed chief executive officer Stephen Dacus formulates a growth plan to fend off a takeover bid. Its domestic growth will likely remain subdued in the medium term, as it’s hindered by a shrinking population and labour shortages, BI said. The 7-Eleven operator intends to leverage AI and expand online delivery services nationwide, which may face intense competition from established market players.

Watch for commentary on the acquisition bid, governance reform, share buyback and the potential initial public offering of 7-Eleven Inc in North America, Jefferies Japan analyst Shunsuke Kuriyama said. 

Uniqlo owner Fast Retailing Co, Ltd likely saw robust earnings, thanks to overseas sales growth, estimates show, though the Chinese market remains challenging, BI said. 

Monday, April 7: No major earnings of note.

Tuesday, April 8: Samsung Electronics said January-March profit would be hit by weakness in the chip business, with US export restrictions on AI chips. Price erosion of the chips may worsen the impact, BI said. Chip earnings are projected to shrink by almost a third, while total operating profit should drop 13%, consensus shows. On the upside, analysts at Citi expect the mobile business to expand margins on better smartphone volumes and lower component prices. 

Wednesday, April 9: Seven & i Holdings’ earnings may have been supported by a recovery in merchandise sales in North America, in line with the company’s plan, Citi said. Any developments related to the company’s response to Alimentation Couche-Tard Inc’s takeover offer will be of interest. 

Thursday, April 10: Fast Retailing likely saw faster operating income growth in the second quarter, as falling temperatures in East Asia spurred clothing sales, SMBC Nikko said. Earlier wage hikes at Uniqlo Japan may dent earnings in the short term, though improved productivity should help, the analysts added.

Friday, April 11: No major earnings of note.

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