Photo = Samsung Electronics Seocho office building in Seocho-gu, Seoul / Reporter Kim Beom-jun [email protected]
Samsung(78,600 +1.03%) The stock price touched the 80,000 won level for the first time ever. The share price was boosted by strong memory semiconductor industry conditions and expectations for special dividends. Stock market experts predicted that the domestic stock market is taking a leap forward thanks to Samsung Electronics in the large market, and that the tech sector, led by Samsung Electronics, will continue to gain strength next year. It is trading at 79,200 won, up 1400 won (1.8%) from the trading day. During the week, it rose to 8,100 won, breaking the record high. Samsung Electronics’ share price, which had been trading in the mid-50,000 won until the end of October, surged more than 40%, leading the KOSPI market rally.
Samsung Electronics is a large stock that accounts for 23% of the total market capitalization of the KOSPI market. The KOSPI index is hitting record highs every day thanks to the traction of Daejangju. On the 24th, the last trading day of last week, the KOSPI, which broke through the unprecedented 2800 line, broke even the 2830 line during the day.
Thanks to the strong Samsung Electronics, the domestic stock market is growing rapidly. Lee Jae-man, a researcher at Hana Financial Investment, said, “Samsung Electronics has contributed 40% to the increase in the KOSPI market cap over the last two months.” “Recently, the KOSPI market cap (1860 trillion won) recorded 98% of the nominal gross domestic product (GDP), the highest. I renewed it,” he explained.
This broke the record high (93%) in 2007, which means that the size of the stock market has increased compared to the real thing. It can also be interpreted as meaning that the index has reached a level where a short-term burden can be felt technically.
However, experts predict that the KOSPI index will continue to rise next year. Lee Kyung-min, a researcher at Daishin Securities, diagnosed, “Despite the burden of overheating, the KOSPI is undergoing a differentiated strength thanks to the revaluation of the Korean asset market and strong supply and demand,” and said, “Next year, it will continue a relatively strong trend compared to the global stock market.”
In particular, it is analyzed that the recovery of demand in major countries, mainly in the US next year, demand for inventory accumulation, and recovery in manufacturing economy and trade will accelerate the recovery of exports in emerging Asia. This was viewed as a factor that doubled the attractiveness of the Korean economy and financial markets.
“The volatility market due to supply and demand will appear next year, but the positive change in the long trend will continue,” said Lee. “We need to make an investment plan with an aggressive buying and overweight strategy.”
Love call continues… Next year’s operating profit is expected to reach 43 trillion won
Experts believe that as the domestic stock market is being re-evaluated, global capital inflows to Samsung Electronics, the chief owner, will continue. In fact, the market cap share of the domestic tech sector, centered on Samsung Electronics, in the emerging markets stock market is 7.6% (as of this year), rising for the second consecutive year.
Samsung Electronics’ memory semiconductor factory in Xi’an, China. Photo = Yonhap News.
It is an analysis that the love call of Donghak Ant (individual investor) to Samsung Electronics will continue for some time. This is because Samsung Electronics’ profit improvement and valuation (corporate value) revaluation are underway.
Seung-Woo Lee, a researcher at Eugene Investment & Securities, said, “In the fourth quarter of this year, the semiconductor and set business profits will inevitably slow down due to the weak dollar and the European blockade. Next year, the memory cycle will boom thanks to the recovery of global trade through vaccines.” Expected.
“Samsung Electronics’ next year’s operating profit will increase by 18% from this year’s (36 trillion won) 43 It will reach trillion won,” he added.
The high dividend attractiveness is also positive. Samsung Electronics accounts for 44% of all domestic dividends, which is absolute (including special dividends). In addition, the dividend payout ratio has been steadily increased over the past three years, and the dividend payout ratio is maintained at the high 30% level.
Ji-Hye Moon, researcher at Shinyoung Securities, said, “In line with the inheritance tax issue of former Chairman Lee Kun-hee, Samsung Electronics will announce a plan to return additional shareholders, such as special dividends and treasury stock purchases, for additional free cash flow (about KRW 9 trillion) along with the announcement of 4Q results. “The dividend policy for the next three years will also be raised above the 2018-2020 dividend,” he predicted.
Chae Seon-hee, Hankyung.com reporter [email protected]