Samsung Electronics Co.’s headquarters in Seoul (Yonhap)
SEOUL, Nov. 10 (Korea Bizwire) — Samsung Group’s market capitalization has continued to grow this year, largely led by a sharp increase in the market capitalization of its flagship company, Samsung Electronics, data showed Sunday.
As of the end of October, the combined market capitalization of the group’s 16 listed subsidiaries came to about 434.8 trillion won (US$375.6 billion), up 68.2 trillion won, or 18.6 percent, from the end of last year, according to the data from market researcher FN Guide.
Such an increase could be largely attributed to a rise in the market capitalization of Samsung Electronics, by far the largest market cap in South Korea, which came despite apparently disappointing performances so far in the year.
Both the sales and profit of the company have steadily dropped from a year earlier in each quarter this year, with its sales slipping 5.3 percent on-year to 62 trillion won and its operating profit plunging 55.7 percent to 7.78 trillion won in the third quarter alone.
Still, the market kingpin’s capitalization has soared 30.06 percent from the start of the year to a little over 300.8 trillion won as of the end of last month, the data showed, on expectations that the world’s largest memory chipmaker would deliver improved earnings down the road.
The tech behemoth has been suffering from a drop in chip prices, and its smartphone business has also not fared well this year.
Of 16 Samsung Group subsidiaries, nine, including Samsung Electronics, had their market capitalization increase over the cited period, while the rest saw their capitalization dwindle.
Out of the 10 largest business groups here, only three, including SK and Hyundai Motor Group, saw their overall market capitalization grow over the cited period, while the other seven had their market capitalization shrink.
SK Group’s overall market capitalization jumped 12.05 percent to 120.9 trillion won, and that of Hyundai Motor Group surged 12 percent to 86.2 trillion won.
(Yonhap)
