Samsung Group's Affiliates Experience 23% Market Value Decline in 2024
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Seoul, Dec 29 (NationPress) The aggregate market capitalization of Samsung Group's affiliated companies has experienced a significant decline of around 23% in 2024, attributed to the lackluster performance of its principal affiliate, Samsung Electronics, as reported on Sunday.
The market value of Samsung's affiliates is currently at 548.4 trillion won ($371.5 billion) as of Thursday, a stark contrast to 709.6 trillion won recorded the previous year, according to information gathered by Yonhap Infomax, the financial news division of Yonhap News Agency.
Samsung Group comprises 22 affiliates listed on the local stock exchange, which include Samsung Electronics Co., Samsung Biologics Co., Samsung C&T Corp., and Samsung Life Insurance Co..
The overall decline is largely due to a 31.71% drop in Samsung Electronics' shares this year, alongside a significant fall of 47.66% and 42.58% in shares of Samsung SDI Co. and Hotel Shilla Co. respectively.
According to Kim Dong-won, a researcher at KB Securities Co., "Shares of Samsung Electronics are anticipated to fluctuate within a restricted range for the foreseeable future, owing to the downcycle in memory chips."
In addition, the earnings forecast for Samsung Electronics for the fourth quarter has been downgraded significantly in light of a downturn in industry demand.
A recent survey by Yonhap Infomax, which included 20 Korean brokerage firms, indicates that Samsung Electronics' operating profit for the period of October to December is projected to be 8.58 trillion won ($5.92 billion).
While this latest estimate is considerably higher than the 2.82 trillion won reported in the same quarter last year, it reflects a decrease of over 1 trillion won compared to the prior estimate of 9.77 trillion won made in October and November.
Market analysts assert that the ongoing decline in demand for conventional IT products, such as smartphones and PCs, has led to sustained weak profitability in Samsung's fundamental memory sector.
The US Commerce Department has recently granted Samsung Electronics up to $4.745 billion in direct funding to bolster the South Korean tech giant's chip manufacturing investments in central Texas, as it aims to enhance domestic semiconductor production.
