Asia300

Samsung Electronics Co., Ltd.

South Korea

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Nov 20, 2017
Prev close: 2,760,000
Nov 20, 2017
Market cap:
Market cap(USD):
396,554.36B
360,323.80M
Shares: 147.34M

Currency in KRW

Company profile

Market(Ticker): KRX(005930)
Sector:
Industry:
Electronic Technology
Telecommunications Equipment
Full time employees: 93,200

Business summary

Samsung Electronics Co., Ltd. engages in the manufacturing and selling of electronics and computer peripherals. The company operates through following business divisions: Consumer Electronics, Information Technology & Mobile Communications and Device Solutions. The Consumer Electronics business division provides cable television, monitor, printer, air-conditioners, refrigerators, washing machines and medical devices. The Information Technology & Mobile Communications business division offers handheld products, communication systems, computers and digital cameras. The Device Solutions business division comprises of memory, system large scale integrated circuit and light emitting diode. The company was founded on January 13, 1969 and is headquartered in Suwon, South Korea.

Company background

Samsung Electronics is South Korea's largest company, with its core business semiconductors and electronic products. The company has an overwhelming presence in South Korea and exerts a strong influence over every sector. The success of its smartphone business has boosted the Samsung brand power overseas. In 2012, Samsung was ranked ninth in U.S. company Interbrand's best global brands survey. It was the highest ranking among Asian companies, overtaking Toyota Motor.

The business was founded in 1969 as part of the Samsung group, which had started out as a trading and textile company. Last year the company's owner and chairman, Lee Kun-hee, a son of the founder, collapsed from a heart attack. His son, Lee Jae-yong, who is vice chairman, took over the management of the company. As Jae-yong has no brothers, he is expected to succeed his father as chairman.

Samsung group's structure is complicated, with its companies holding each other's shares. The largest shareholder of Samsung Electronics is Samsung Life Insurance, but Cheil Industries, the top shareholder of Samsung Life Insurance, is considered to be the de facto holding company of the group. As of the end of 2014, Vice Chairman Lee Jae-yong owned 23.23% of Cheil Industries, indicating a generational shift has fairly progressed in terms of ownership.

While the semiconductor business continues to generate high profits, the smartphone operation, which has been behind the company's rapid growth over the past several years, fares poorly these days. The company still makes high profits as a manufacturer, but needs to explore new businesses to get its growth back on track.

In the news

Financial highlights

Dec 2016

  • Local currency
  • US Dollar
Revenue 201,866.74B
Gross profit 79,183.91B
Operating income 29,240.67B
Income before tax 30,694.15B
Net income 22,415.65B
EBITDA 49,953.63B
Diluted EPS 157,782
Dividends per share 28,500
Total assets 262,174.32B
Total liabilities 69,211.29B
Total equity 186,424.32B
Operating cash flow 47,385.64B

Currency in KRW

Revenue 173,994.60M
Gross profit 68,250.83M
Operating income 25,203.35M
Income before tax 26,456.14M
Net income 19,320.68M
EBITDA 43,056.44M
Diluted EPS 135.99
Dividends per share 24.56
Total assets 217,067.64M
Total liabilities 57,303.59M
Total equity 154,350.31M
Operating cash flow 40,843.01M

Currency in USD

Valuation measures

Dec 2016

PER 11.42
ROA 8.88%
ROE 12.47%
Operating margin 14.48%
Profit margin 11.10%

Key executive

  • Vice Chairman, President & Co-CEO: Kinam Kim
  • Co-President & Co-Chief Executive Officer: Hyun-Suk Kim
  • Co-President & Co-Chief Executive Officer: Dongjin Koh
  • Chief Financial Officer: Hee-Chan Noh
  • Executive Director & Head-Compliance Team: Sang-Ju Lee

Share holders

  • National Pension Service of Korea(10.0%)
  • Samsung Life Insurance Co., Ltd.(8.2%)
  • Samsung Electronics Co., Ltd.(7.4%)
  • Samsung C&T Corp.(4.6%)
  • LEE KUN HEE(3.8%)
  • Capital Research & Management Co. (Global Investors)(2.3%)
  • Capital Research & Management Co. (World Investors)(2.1%)
  • The Vanguard Group, Inc.(1.5%)
  • BlackRock Fund Advisors(1.5%)
  • Samsung Fire & Marine Insurance Co., Ltd.(1.4%)

Address

  • Website: http://www.samsung.com
  • Address: 129 Samsung-ro, Yeongtong-gu, Suwon, 16677, South Korea
  • Phone: +82.31.200.1114

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