Seoul, Dec 29 (IANS) The combined market capitalisation of Samsung Group’s affiliates dropped about 23 per cent in 2024 due to the sluggish performance of its key affiliate Samsung Electronics, data showed on Sunday.
The market value of Samsung’s affiliates stood at 548.4 trillion won ($371.5 billion) as of Thursday, compared with 709.6 trillion won a year earlier, according to data compiled by Yonhap Infomax, the financial news arm of Yonhap News Agency.
Samsung Group has 22 affiliates listed on the local stock market, including Samsung Electronics Co., Samsung Biologics Co., Samsung C&T Corp. and Samsung Life Insurance Co.
The overall decrease came as shares of Samsung Electronics tumbled 31.71 per cent this year, with those of Samsung SDI Co. and Hotel Shilla Co. falling 47.66 per cent and 42.58 per cent, respectively.
“Shares of Samsung Electronics are expected to trade within a limited range for the time being due to the downcycle of memory chips,” said Kim Dong-won, a researcher at KB Securities Co.
Meanwhile, Earnings forecast for Samsung Electronics for the fourth quarter have been revised down largely due to a downturn in industry demand.
According to the latest survey conducted by Yonhap Infomax, which polled 20 Korean brokerage houses, Samsung Electronics’ operating profit for the October-December period is estimated at 8.58 trillion won ($5.92 billion).
While the latest forecast is sharply higher than the 2.82 trillion won recorded in the fourth quarter of last year, it represents a drop of over 1 trillion won compared with the previous estimate of 9.77 trillion won made in October and November.
Market observers say the deepening slump in demand for traditional IT products, including smartphones and PCs, has contributed to prolonged weak profitability in Samsung’s core memory business.
The US Commerce Department recently awarded Samsung Electronics up to $4.745 billion in direct funding to support the South Korean tech giant’s chipmaking investment in central Texas, as it strives to strengthen domestic semiconductor production.
–IANS
na/
