If you believe the estimates of financial analysts, Samsung remains the most expensive South Korean company. Recently, however, investors lose interest in that player of the IT market. Foreign shareholders start to get rid of Samsung securities.
Vestifinance the publication cites data of the Korean stock exchange, according to which in the period from 1 January to 18 January 2016 on this trading platform, foreign investors sold shares of various companies in a total of 1.9 trillion won ($1.6 billion). Assets Samsung Electronics were the most selling: from beginning of 2016 of its securities sold in the amount of 540 billion won (over $444 million).
As of Friday, January 22, the Samsung share price has stagnated in 1168000 won (about $971). Since the beginning of this year the stock market fell about 10%.
Some analysts attribute the trend to the sale of the Samsung with a growing concern in emerging markets due to the volatility of the Chinese economy. The majority of experts agree in opinion that the reason lies in the poor financial performance of Samsung, which comes amid a difficult situation in the semiconductor and smartphone business.
According to the preliminary data published earlier this year, Samsung’s operating profit in the fourth quarter amounted to 6.1 trillion won ($5,03 billion), while earnings of 53 trillion won ($43.7 billion). Analysts predicted these figures at 6.5 trillion and 53.6 trillion won, respectively.
Experts believe that in the past quarter operating profit at the division of Samsung for the production of smartphones was below 2 trillion won ($1.65 billion), down 16.3 percent quarter-over-quarter. In the semiconductor business is the result expected less than 3 trillion won ($2.5 billion) against a 3.66 trillion won in the previous quarter.
At the end of last year also it became known that Samsung has replaced responsible for smartphones. New head of Samsung mobile business was Dong-Jin Koh, who has replaced Jay Kay Bus. J. K. Shin will remain in the company, he will lead the division, IT & Mobile Communications, which includes the Department of Mobile Communications, now has received the new head in the person of don-Gina Koch.
Changing managerial responsibilities in the mobile unit takes place on the background of the problems experienced by Samsung in the smartphone market. They are related to the growing pressure from Apple and manufacturers of cheap devices. Competing with the latter, Samsung is forced to promote more budget handsets, which affects revenue.