Slow Chip Business
There is a growing concern over Samsung Electronics’ growth slowdown in the stock market industry. This is largely due to the fact that the company is showing a noticeable sales slowdown in the semiconductor sector, which has been serving as its cash cow, as well as poor sales in the smartphone sector. Some securities firms forecast that Samsung Electronics will post some 6 trillion won (US$5.1 billion) in operating profits in the fourth quarter due to a greater drop in sales than expected in the semiconductor sector. The figure falls short of the market forecasts.
Daishin Securities Co. said on Dec. 21, “As Samsung Electronics’ sales in the semiconductor sector fall short of earlier forecasts, its operating profits in the fourth quarter will stand at 6.2 trillion won (US$5.27 billion).” The figure is about 10 percent lower than the previous forecasts of 6.95 trillion won (US$5.9 billion), and it is also the lowest forecast presented by domestic securities companies. Moreover, it is more than 500 billion won (US$424.63 million) lower than its average forecast of 6.74 trillion won (US$5.73 billion).
There is an increasing number of securities firms that lowers the forecast of Samsung Electronics. Recently, Samsung Securities Co. has lowered Samsung Electronics’ operating profit forecast in the fourth quarter from 7.1 trillion won (US$6.03 billion) to 6.8 trillion won (US$5.77 billion), while Mirae Asset Securities Co. reduced the figure from 6.8 trillion won (US$5.77 billion) to 6.6 trillion won (US$5.61 billion). Also, Kyobo Securities Co., eBEST Investment & Securities Co. and Hyundai Securities Co. lowered Samsung Electronics’ Q4 operating forecast to 6.6 trillion won (US$5.61 billion).
According to financial information provider WISEfn, securities companies predicted that Samsung Electronics will record 6.74 trillion won (US$5.73 billion) in operating profits in the fourth quarter, up 27.53 percent from the same period a year ago. Its operating profits in the first quarter next year are expected to grow a mere 3.1 percent year-on-year to 6.16 trillion won (US$5.24 billion), a rapid drop in growth.