Samsung shares drop 8% after dividend plan misses market targets

Post Today•Economy•2d ago

Reader Briefing

Samsung Electronics shares fell 8% on Monday after the company's record-breaking shareholder return plan failed to meet investor expectations.

•Samsung Electronics announced a shareholder return plan valued up to 79 billion USD.
•Samsung Electronics shares dropped 8% while competitor SK Hynix shares rose 0.4%.
•Investors expressed disappointment over the lack of treasury share cancellation and lower-than-expected returns relative to AI cash flow.

•Samsung Electronics shares plunged 8% during the Monday morning market opening.
•Samsung Electronics announced a record-breaking shareholder return plan of up to 79 billion USD.
•Investors were disappointed that the return was lower than expected given the massive cash flow generated from AI technology.
•Samsung Electronics specified that shareholder returns for this year will be approximately 90-110 trillion won, including a 30 trillion won cash dividend in the third quarter.
•Samsung Electronics plans to allocate 50% of its accumulated free cash flow over 3 years for returns under a policy framework for 2024-2026.
•SK Hynix announced a plan to buy back and cancel treasury shares worth 40 trillion won and allocate over 50% of free cash flow for 2025-2027 to shareholders.
•The KOSPI index of the South Korean stock market fell by 1.5%.
•Investors are monitoring Samsung Electronics' decisions in January regarding the management of remaining funds totaling 60-80 trillion won.

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Sohn In-joon

"Samsung did not mention the opportunity to improve the shareholder return policy and has no plan to cancel treasury shares as SK Hynix did."

ซัมซุงไม่ได้พูดถึงโอกาสที่จะยกระดับนโยบายผลตอบแทนผู้ถือหุ้นให้ดีขึ้นกว่าเดิม และไม่มีแผนเพิกถอนหุ้นในคลังเหมือนที่ SK Hynix ทำ

Morgan Stanley

"Although Samsung is returning a large amount of capital this time, it is still slightly less than the market expected."

แม้รอบนี้ซัมซุงจะคืนทุนก้อนใหญ่ แต่ก็ยังถือว่าน้อยกว่าที่ตลาดคาดไว้เล็กน้อย

Samsung Electronics(ซัมซุง อิเล็กทรอนิกส์)ℹ️

A company whose shares fell 8% after announcing a shareholder return plan of up to 79 billion USD.

SK Hynix(เอสเค ไฮนิกซ์)ℹ️

A key competitor of Samsung Electronics that announced a 40 trillion won treasury share buyback and cancellation plan.

Eugene Securities

The firm where analyst Sohn In-joon is employed.

Morgan Stanleyℹ️

A leading financial institution that assessed Samsung Electronics' capital return as slightly less than market expectations.

The South Korean stock market index that fell by 1.5%.

Sohn In-joon(ซน อินจุน)

An analyst from Eugene Securities who commented on Samsung Electronics' lack of treasury share cancellation plans.