[Weekly HOT Stocks] Samsung Electronics Approaches Year-End... Institutional Net Buying Increases

Samsung Electronics' Galaxy Note20 (Photo by Asia Economy DB)

[Asia Economy Reporter Kum Boryeong] As the year-end approaches, Samsung Electronics has captured the market's attention.

According to the Korea Exchange on the 26th, institutional investors purchased 372.7 billion KRW worth of Samsung Electronics shares between the 21st and 24th. Combining the KOSPI and KOSDAQ markets, Samsung Electronics ranked first among the top stocks with net purchases by institutional investors during this period.

Samsung Electronics' stock price closed at 77,800 KRW on the 24th, up 5.28% (3,900 KRW) from the previous trading day, marking a new high. During the day, the price even surged to 78,800 KRW at one point. On the 24th, foreign investors also bought 13.7 billion KRW worth of Samsung Electronics shares.

There is significant interest in Samsung Electronics' year-end dividend. Kyobo Securities analyst Kang Hyunjung explained, "Samsung Electronics' dividend accounts for at least one-third of the KOSPI 200, so it can greatly influence the overall dividend yield, making dividend forecasts very important." She added, "This year-end marks the final day of Samsung Electronics' three-year policy to return 50% of free cash flow (FCF) to shareholders. Considering the remaining resources, there is a high possibility of an increased year-end dividend." Samsung Electronics announced in 2017 that it would use at least 50% of the FCF generated over the next three years for shareholder returns such as additional cash dividends, share buybacks, and cancellations.

According to Shinhan Investment Corp., Samsung Electronics' performance next year is estimated at 248.49 trillion KRW in sales and 47.51 trillion KRW in operating profit. Compared to the previous year, sales are expected to increase by 7.1%, and operating profit by 31.7%. Shinhan Investment analyst Choi Doyeon stated, "Semiconductors will lead performance improvement through simultaneous improvements in memory and non-memory sectors. Especially, memory semiconductors are expected to continue improving performance until the first half of 2022." He analyzed, "Quarterly DRAM price increases next year are expected to be 5% in Q1, 9% in Q2, 12% in Q3, and 7% in Q4."

Next year, production of about 300 million smartphones is also anticipated. Shin Young Securities analyst Moon Jihye said, "Samsung Electronics is expected to produce 350 million handsets next year, with smartphone production around 300 million units. This represents an attempt to grow shipments by about 15% compared to this year and is seen as a strategy to achieve shipments exceeding 300 million units again since 2017." She added, "Samsung Electronics' flagship lineup next year will prominently feature foldable smartphones, with up to 7 million foldable smartphones expected to be released."

This content was produced with the assistance of AI translation services.