On Wednesday, one day before Samsung Electronics’ official third-quarter results announcement, Samsung Group stocks are experiencing a collective surge. Investors’ expectations are growing for Samsung Electronics’ performance improvements and more concrete shareholder return policies, following SK Hynix’s record-breaking results and announcement of substantial shareholder returns.
As of 10:27 a.m. (KST) on Wednesday, Samsung Life Insurance is trading at 277,500 KRW (about 208 USD), up 22,500 KRW (about 16.84 USD) (8.82%) from the previous trading day.
Samsung C&T has risen by 25,000 KRW (about 18.72 USD) (8.31%) to 326,000 KRW (about 244 USD), while Samsung Electro-Mechanics is up 116,000 KRW (about 86.84 USD) (9.66%), trading at 1,317,000 KRW (about 986 USD).
Samsung Electronics has also climbed by 18,250 KRW (about 13.66 USD) (8.22%), trading at 240,250 KRW (about 180 USD). Other Samsung affiliates are showing strength as well, with Samsung Fire & Marine Insurance up 6.70%, Samsung Securities up 5.36%, and Samsung SDI up 4.13%.
Notably, Samsung Electronics’ preferred stock has surged by 15,400 KRW (about 11.53 USD) (9.00%) to 186,500 KRW (about 140 USD), outpacing the common stock. This movement is interpreted as reflecting heightened expectations for expanded shareholder returns.
Today’s rally in Samsung Group stocks appears to be influenced by SK Hynix’s strong performance and its announcement of substantial shareholder returns.
SK Hynix reported a third-quarter operating profit of 8.3 trillion KRW (about 6.2 billion USD), exceeding market expectations. Additionally, the company unveiled plans for shareholder returns totaling approximately 100 trillion KRW (about 74.9 billion USD), including over 30 trillion KRW (about 22.5 billion USD) in cash dividends and more than 60 trillion KRW (about 45 billion USD) in stock buybacks and cancellations.
Consequently, market attention is now shifting to Samsung Electronics’ third-quarter results announcement and conference call scheduled for October 29. Key points of interest include the semiconductor division’s performance, future market outlook, and potential details on shareholder return policies.
Samsung Life, Samsung Fire & Marine Insurance, and Samsung C&T, which hold stakes in Samsung Electronics, are also expected to benefit from potential dividend increases. An increase in Samsung Electronics’ dividend payout could lead to higher dividend income for these affiliated companies.
