Asia300

Samsung Electronics Co., Ltd.

South Korea

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May 21, 2018
Prev close: 50,000
May 21, 2018
Market cap:
Market cap(USD):
356,885.52B
328,820.66M
Shares: 7,322.95M

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 239,575.37B
Gross profit 107,502.60B
Operating income 53,645.03B
Income before tax 56,195.96B
Net income 41,344.56B
EBITDA 75,762.43B
Diluted EPS 5,990.88
Dividends per share 850
Total assets 301,752.09B
Total liabilities 87,260.66B
Total equity 207,213.41B
Operating cash flow 62,162.04B

Currency in KRW

Revenue 211,917.91M
Gross profit 95,092.10M
Operating income 47,452.05M
Income before tax 49,708.49M
Net income 36,571.60M
EBITDA 67,016.13M
Diluted EPS 5.29
Dividends per share 0.75
Total assets 281,866.40M
Total liabilities 81,510.11M
Total equity 193,557.89M
Operating cash flow 54,985.82M

Currency in USD

Valuation measures

Dec 2017

PER 8.50
ROA 14.66%
ROE 21.00%
Operating margin 22.39%
Profit margin 17.25%

Key executive

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

Share holders

  • The Vanguard Group, Inc.(74.3%)
  • National Pension Service of Korea(10.1%)
  • 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)(2.1%)
  • Capital Research & Management Co. (World Investors)(1.8%)
  • BlackRock Fund Advisors(1.7%)
  • 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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