Difficulty: Moderate 1) From 2019 to 2021, earnings are expected to increase by 80% 2) This can help narrow its 50% valuation gap to smartphone peers 3) Other factors (50% Free Cash Flow distribution, Kioxin IPO) The InvestQuest’s View We see Samsung Electronics as a potential catch-up play to the broader tech sector, as it benefits from several short-term price catalysts. As the largest smartphone maker, the company is expected to benefit from Huawei’s expected loss in smartphone market share. Earnings should also be boosted by sustained growth in the memory chip sector. Stock valuations are inexpensive on P/E and P/B metrics and should remain supported given the company’s 25% net cash position (relative to market cap). We also see the potential for a share buyback or special dividend announcement to happen shortly. Disclaimer: We have shares in Micron and Samsung Electronics’ London-listed GDR (the...