April 27, 2024

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[THE INVESTOR] Samsung Electronics' shares hit an all-time high of 1,830,000 won (US$1,531.60) on Dec. 21, beating highs set earlier this week.

The shares closed at 1,805,000 won on the same day.

In August this year, Samsung shares crossed the 1.6-million-won mark for the first time since the firm was listed on the main KOSPI market in 1975 on expectations for the Galaxy Note 7 and restructuring plans to split the company into two entities -- holding and business firms.

The stocks, however, were volatile for a while due to the Galaxy Note 7 crisis, which Samsung estimated would cost more than 3 trillion won, but garnered momentum again from November through December as the tech firm vowed to refurbish shareholder policies.

Samsung has also affirmed that it was mulling over restructuring plans, driving up the stock price further.

Market analysts forecast that the tech behemoth’s profits during the October-December period would improve thanks to the robust sales of semiconductors.

“Samsung is expected to have earned 53.6 trillion won in revenue and 8.4 trillion won operating profit, up 12 percent and 62 percent, respectively, from the previous quarter,” Yoo Jong-woo, Korea Investment & Securities said.

“Despite uncertainties surrounding the release date of the Galaxy S8, Samsung will be able to maintain its competitive edge in the high-end smartphone sector next year.”

The rally of the tech firm, a crown jewel of Samsung Group, also gave a boost to the stocks of other affiliates of in recent days, such as Samsung Electro-Mechanics, Samsung SDS, Samsung C&T, and Samsung Engineering.

By Kim Young-won (wone0102@heraldcorp.com)