Despite Six-fold Increase in Stockholders

Samsung Electronics’ stock price is moving sideways with the global semiconductor industry remaining sluggish.
Samsung Electronics’ stock price is moving sideways with the global semiconductor industry remaining sluggish.

Samsung Electronics executed stock split two years ago. At that time, trading of its stocks was resumed at 50,000 won per share and expectations were high based on an easier access to the stocks. However, the stock price is moving sideways with the global semiconductor industry remaining sluggish.

The price closed at 48,800 won per share on May 8. Although it is 14.82 percent higher than this year’s bottom, it is much lower than the price at the split, 53,000 won. Besides, the rate of increase is less than half of KOSPI’s rise from this year’s bottom, 33.49 percent.

The stock price of Samsung Electronics reached 62,400 won per share on Jan. 20. However, the COVID-19 pandemic broke out to drop the price to 42,500 won on March 23. Moreover, its Q2 performance is forecast to show a significant deterioration although its Q1 performance was better than expected.

At present, predictions about a negative growth of the global semiconductor market are following one after another. For example, market research firm IDC recently estimated this year’s semiconductor market growth at negative 4.2 percent.

Still, optimistic forecasts are still prevalent when it comes to the memory chip market and securities companies are saying that Samsung Electronics’ profit will improve in the end in spite of the recently lowered consensus. “The operating profit of Samsung Electronics is expected to rebound in the third quarter after hitting the bottom in the second quarter,” said Hana Financial Investment research analyst Kim Kyung-min, adding, “The demand for its chips is likely to increase as contactless business and living become increasingly prevalent.”

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