Seoul, South Korea - Samsung Electronics, the South Korean tech giant, continued its downward trend, hitting a new 52-week low of 55,500 won on Monday morning. Shares fell by 2.63%, or 1,500 won, from the previous trading day.

The decline was largely attributed to persistent foreign selling. As of 9:30 AM, foreign investors were net sellers in both the KOSPI and KOSDAQ markets, with a net sell of 642,079 shares of Samsung Electronics, amounting to approximately 35.6 billion won.

Despite the recent slump, many analysts believe that Samsung Electronics is currently undervalued. Park Sang-wook, a research analyst at Shinyoung Securities, noted that the company's 12-month forward price-to-book ratio (PBR) has approached the lower end of its band at 0.84x. "Considering the expected improvement in the industry next year due to the expansion of high-bandwidth memory (HBM) capacity, the current stock price is considered to be excessively undervalued," Park said.

However, opinions differ regarding the timing of a potential rebound. Kim Un-ho, a research analyst at IBK Investment Securities, expressed concerns about the company's quality issues. "The fundamental reason for the underperformance of Samsung Electronics' stock price this year is the quality issues that have arisen across all product lines," Kim said. "Whether the company can resolve these issues next year will be the absolute criterion for the recovery of the stock price, improvement in profitability, and the competitiveness of the DS (semiconductor) division. At this point, we cannot confidently confirm that possibility."

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