Samsung Electronics is projected to exceed 100 trillion won in operating profit for the third quarter, marking the first time in the company's history that a single quarter's profit will surpass this milestone. This achievement is unprecedented in the history of South Korean companies and ranks among the top globally.
According to industry sources and analysts on September 27, the consensus for Samsung's consolidated operating profit for the third quarter, set to be announced early next month, is estimated to be around 106 trillion to 110 trillion won. If realized, this profit would be nearly 2.5 times last year's total annual operating profit of 43.6 trillion won, achieved in just over a month of the third quarter. When combined with the cumulative operating profit of 146 trillion won from the first half of the year, the total for the third quarter is expected to surpass 250 trillion won.
This remarkable performance positions Samsung as a leader in profitability compared to global tech giants. It will surpass the previous record quarterly operating profits of Nvidia (approximately 87.66 trillion won), Alphabet (about 60 trillion won), and Apple (around 51.44 trillion won), securing the second spot in global operating profit rankings. The top position is expected to be held by Saudi Aramco, which is projected to achieve operating profits between 120 trillion and 150 trillion won due to soaring oil prices.
The backbone of this record-breaking performance is undoubtedly Samsung's core memory business. The surge in investments in artificial intelligence (AI) data centers has significantly increased the supply of high-bandwidth memory (HBM) and server DRAM, both of which are high-value AI memory products. Additionally, the rise in selling prices of general-purpose memory has maximized overall profitability. Leveraging its overwhelming production capacity, Samsung has absorbed global memory demand, driving unprecedented growth in its performance.
Samsung is also expected to implement a historically large shareholder return policy. On August 21, the company announced during a board meeting that the remaining funds for shareholder returns this year would amount to approximately 90 trillion to 110 trillion won, signaling a return policy of unprecedented scale, nearly five times the previous record of 20.3 trillion won set in 2020.
Alongside the third-quarter earnings announcement, Samsung plans to finalize and disclose specific execution plans. Industry analysts anticipate that around 30 trillion won in cash dividends and special dividends will be distributed in the third quarter alone, including regular dividends.
Given the explosive increase in cash liquidity, there is a strong possibility that Samsung will also utilize large-scale share buybacks and retirements. Share buybacks and retirements can significantly enhance earnings per share (EPS) by reducing the number of shares outstanding, potentially serving as a powerful momentum for stock price increases. Considering Samsung's cash assets exceeding 100 trillion won in the first half of the year and the rapid growth of free cash flow (FCF) in the third quarter, it is expected that the company will smoothly execute share retirements and expand dividends worth trillions of won by the end of the year.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.