April 26, 2024

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[THE INVESTOR] Tech giant Samsung Electronics' operating income in 2016 is forecast to have reached a record high of 38.6 trillion won (US$31.90 billion) with its revenue coming in at 22.5 trillion won thanks to its robust chip business, according to an investment report on Jan. 3.

The projected revenue and operating profit are 12.3 percent and 34.8 percent higher, respectively, over last year’s 200.2 trillion won and 28.1 trillion won.

“The semiconductor business drove the sales performance last year due to a price increase of memory chips caused by a short supply in the market,” said Choi Do-yeon, an analyst from Kyobo Securities, adding Samsung also has an upper hand in solid-state drives, mobile flexible organic light-emitting diodes, and smartphones.

In the fourth quarter alone, Samsung is expected to have earned 52.1 trillion won revenue and 8.6 trillion won in operating income, up 9 percent and 66.1 percent, respectively.

By breakdown, the tech giant is forecast to have made 4.42 trillion won in operating profit in the chip business; 2.26 trillion won in the mobile business; 1.01 trillion won in the display business; and 950 billion won in the consumer electronics business.

The firm’s plan to revamp its dividend policy and governing structure are also expected to improve the corporate value, according to the analyst.

Samsung announced last year that it would refurbish its dividend policy to hand out more returns for stakeholders and establish a holding company.

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