Samsung Electronics to reveal ‘stockholder return policy’ on October 31…The biggest size expected
[ Kim Min Soo minsu@ ] | 2017-10-24 10:53:33
Samsung Electronics is expected to announce its mid-to long-term shareholder return policy for 2018-2020.
The shareholder return to be announced this year is expected to be the largest ever considering Samsung Electronics` record-breaking performance in recent years.
According to the securities industry on October 23, Samsung Electronics plans to propose three-year shareholder value enhancement plan with the announcement of the quarter 3 earnings results on March 31 and dividend increase, treasury stock purchase and incineration.
On the other hand, Samsung Electronics plans to maximize shareholder value by purchasing treasury stocks if the remaining amount of resources is raised.
Samsung Electronics paid a total of KRW 3.99 trillion in cash and bought treasury shares worth KRW 7.11 trillion last year. It accounted for 49.7 % of last year`s net profit of KRW 22.14 billion.
In the first half of this year, 1,659,600 ordinary shares and 41,400 shares of preferred stock were acquired, while 1001,843 shares of common stock and 1,869,847 shares of preferred stock were canceled.
Samsung Securities` net profit this year is expected to exceed KRW 40 trillion, double the figure of last year, and exceed KRW 50 trillion next year and next year.
Samsung Electronics revealed that it will use 50% of its free cash flow for shareholder returning, so it is expected that the shareholder return will be the largest ever.
Kim Gyeong-min, a researcher at Daehan Securities, stated, "The surplus cash flow next year is estimated to be KRW 38 trillion, up by KRW 20 trillion from the previous year." This means that the operating profit estimate for next year is KRW 63 trillion. It is expected to decrease to KRW 31 trillion."
Samsung Electronics is considering measures to maintain its cash holdings on a regular basis to maintain a stable financial structure, invest in sustainable growth, and prepare for mergers and acquisitions (M & A) to respond to market changes.
Meanwhile, last year, it has been reported that the governance committee will be strengthened and the organization of risk management and asset utilization will be promoted.
"If Samsung Electronics` shareholder return policy improves compared to its existing policy after the next year, there will be two cases of return and shareholder return," said Roh Chang-hyun, a researcher at Hyundai Investment & Securities. Momentum seems to be more powerful."
By Kim Min Soo minsu@
