Samsung Electronics started with a slight rise following the announcement of a trillion won stock buyback.
As of 9:04 a.m. on the 18th, Samsung Electronics is trading at 56,300 won, up 0.54% from the previous day.
The stock buyback, which was announced last year, does not seem to significantly impact the stock price. On this day, Samsung Electronics announced that it would retire its previously acquired stock worth 3 trillion won.
The stock being retired this time was acquired based on a board resolution on Nov. 15 last year and consists of 50,144,628 common shares and 6,912,036 preferred shares.
Samsung Electronics explained, "The retirement of treasury shares acquired within the range of distributable income is decided by board resolution, which only reduces the number of shares but does not decrease the capital."
Last year, Samsung Electronics, which fell to '40,000 Electronics' for the first time in 4 years and 5 months, announced it would purchase a total of 10 trillion won worth of treasury stock over the next year to enhance shareholder value. This period extends until November this year.
In the securities market, there are positive evaluations not only for enhancing shareholder value but also for Samsung Electronics' business conditions. Kim Dong-won, a research institute analyst at KB Securities, noted that "there is a high possibility of increased memory purchase demand due to the normalization of general-purpose memory semiconductor inventory from March" and that "global new customer acquisition and increased orders are expected to improve foundry utilization rates in the future."
Cha Yong-ho, an analyst at LS Securities, predicted that "with the expansion of the adoption of our customized artificial intelligence chip ASIC, the diversification of client companies will gradually narrow the valuation gap compared to competitors" and added, "The time when the leverage effect, which is Samsung Electronics' advantage during the memory upcycle, is reflected will see a surge in stock prices."