Asia300

Samsung Electronics Co., Ltd.

South Korea

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Feb 19, 2018
Prev close: 2,419,000
Feb 19, 2018
Market cap:
Market cap(USD):
347,380.76B
325,399.98M
Shares: 146.45M

Currency in KRW

Company profile

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

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 2017

  • Local currency
  • US Dollar
Revenue 239,580B
Gross profit 110,290B
Operating income 53,650B
Income before tax 56,200B
Net income 42,190B
EBITDA 57,880B
Diluted EPS --
Dividends per share 42,500
Total assets 301,752.1B
Total liabilities 87,260.7B
Total equity 214,491.4B
Operating cash flow 62,160B

Currency in KRW

Revenue 211,922.00M
Gross profit 97,557.71M
Operating income 47,456.44M
Income before tax 49,712.06M
Net income 37,319.43M
EBITDA 51,198.12M
Diluted EPS --
Dividends per share 37.59
Total assets 281,866.41M
Total liabilities 81,510.15M
Total equity 200,356.25M
Operating cash flow 54,984.02M

Currency in USD

Valuation measures

Dec 2017

PER 8.89
ROA 14.96%
ROE 21.04%
Operating margin 22.39%
Profit margin 17.60%

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 Roh
  • 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.(7.5%)
  • Samsung C&T Corp.(4.6%)
  • LEE KUN HEE(3.8%)
  • Capital Research & Management Co. (Global Investors)(2.5%)
  • Capital Research & Management Co. (World Investors)(2.1%)
  • BlackRock Fund Advisors(1.6%)
  • The Vanguard Group, Inc.(1.6%)
  • 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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