Samsung Electronics shares plunge 5.33% after record 110 trillion-won return plan

Samsung Electronics shares fell 15,000 won, or 5.33%, to 266,500 won by 9:05 a.m. on Aug. 24 after the company announced a 2026 shareholder return plan worth 90 trillion won to 110 trillion won, or about $64.8 billion to $79.2 billion. The program is roughly five times the previous South Korean stock-market record of 20.3 trillion won set in 2020, but fell short of market expectations for returns of as much as 150 trillion won. Those expectations were based on projections that Samsung Electronics' operating profit would reach 380 trillion won this year and annual free cash flow would total 263 trillion won, with investors expecting 50% of that cash flow to be returned. Preferred shares fell 7.73%, Samsung C&T dropped 5.06% and Samsung Life Insurance declined 4.41%. Samsung Electronics may announce further dividends, share buybacks and share cancellations in October, with the exact size and structure to be confirmed in a filing next January. KB Securities head of research Kim Dong-won also expects the company to disclose its 2027-2029 shareholder return policy in January; applying the current 50% free-cash-flow policy could produce at least 600 trillion won in returns over those three years.

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