Overlord Samsung returned, the downturn returned to the peak, stocks rose this year, the new Galaxy Note 7 was even praised by Wall Street Journal columnist Joanna Stern as the best Android phone, Samsung will return to glory, is about to return to the king of Asia?
Samsung Electronics' share price hit a record high on Thursday, with a 30% increase this year and a market value of $235 billion, more than five times that of Sony, directly following Chinese Internet giants Alibaba and Tencent. Such market value also allows Samsung to surpass Intel, Coca-Cola, Visa and other companies, but the main rival Apple's market value is still ranked first in the world, up to 588 billion US dollars.
Reasons for Samsung stocks soaring
Samsung’s profit in the previous quarter was the best in two years, and the operating profit of the mobile phone division increased by 57% compared with the same period last year. Samsung was originally the most important constituent stock in the Korea Composite Stock Index. After the stock surged, the influence on the South Korean stock market also rose.
In terms of market value, Samsung accounts for about 21% of the South Korean stock market, which is even higher than the biggest eight companies listed after Samsung. In the past year, Samsung's gains have caused the company's market value to rise by about 44%. Conversely, Apple's market value has fallen by 6% during the same period because of poor iPhone sales. In addition, Samsung's P/E ratio has been closely followed by Apple, the first time in three years; FactSet data shows that Samsung's P/E ratio has exceeded 10, and Apple dropped to about 12.6 at the end of July.
Since 2012, even though Samsung has become a world-renowned brand, and the sales volume of smart phones has reached three times that of Apple, but because the dividends are not eye-catching, and investors are not sure whether Samsung can stay ahead for a long time, the stock price has almost stayed at the same time. The same section.
However, Samsung did not lose the throne like Nokia, Motorla, Blackberry and other companies, but once again established its dominance in the two-year, hard-hitting smart phone war. The gross profit of Samsung's mobile phone division has been hit hard by the competition of low-cost mobile phone manufacturers in China, but it has successfully pulled back to 16%, the highest level since 2014.
Joe Vari, portfolio manager at ArTIsan Partners Asset Management, believes that the main reason for Samsung's promising future is to improve shareholder compensation and the right long-term strategic focus.
Samsung continues to invest in semiconductors and display panels, with an annual investment of nearly 20 billion US dollars, allowing Samsung to lead competitors such as Micron (memory) and LG (smart phone panel) in technology; analysts said that this advantage makes Samsung quite Opportunity to increase sales of smart phone components.
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