Instant View: Samsung Elec profit estimate above street view

SEOUL (Reuters) - Samsung Electronics Co Ltd, the world's top maker of memory chips and flat screen TVs, estimated its October-December consolidated operating profit at a median 3.7 trillion won ($3.27 billion).

The preliminary estimate is higher than a consensus forecast of 3.54 trillion won from analysts polled by Thomson Reuters I/B/E/S.

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Following are some reactions from fund managers and analysts:

LEE JEONG, ANALYST, HANA DAETOO SECURITIES

"Considering incentive payments, the numbers were very good. The semiconductor business in particular produced quite strong results...and will post steady growth this year with resilient demand and prices after rival companies have not made enough investments."

"DRAM will play a cash-cow role for Samsung for the time being. Expectations for new products such e-books will raise demand for NAND chips in the longer term and highlight its growth potential. Samsung will be at the center of growth in the NAND chip market."

"In handsets and household goods, it looks difficult to avoid the (negative) impact of the stronger won, and higher marketing and promotion costs to fight deepening competition will lower margins slightly."

"Through this year, Samsung Electronics will see its corporate value rising on expectations about improvements in management structure (of the parent group), following the planned IPO of Samsung Life and Samsung's plan to enter new businesses such as biotechnology and solar batteries."

JAY KIM, ANALYST, HYUNDAI SECURITIES

"Unless the won jumps too much against the dollar, Samsung's earnings will likely improve further in the first quarter, given recovering global demand and cost-cutting efforts."

"Samsung will be able to beef up its global market share in chips and LCD panels but will face pretty tough competition in TVs and handsets."

PARK YOUNG-JOO, ANALYST, WOORI INVESTMENT & SECURITIES

"We think the memory chip sector will continue to be strong through much of this year, and that the LCD sector will hold up through the first quarter, though pricing may weaken from the second."

"Japanese competitors will try to regain their positions with new products and more attractive pricing, but I do not think they will pose a significant threat to Samsung Elec as it already has a strong product lineup, good pricing and strong retail channels.

"Looking at 2010, some risk factors would be the possibility of a double dip in economies, and forex swings."

(Reporting by Rhee So-eui, Jungyoun Park, Seo Eun-kyung and Kim Yeon-hee; Editing by Jonathan Hopfner)