This week Samsung Electronics Co Ltd anticipated better wages and declared an annulment of treasury shares after posting a good first-quarter profit elevated by the business of memory chip, bringing its shares to an all new level of height.
The tech giant from South Korea also took a decision of not adopting an investment company formation, refusing a call from Elliott Management, the U.S. activist hedge fund, to divide itself in two.
Yet it did accept part of proposal from Elliott, making its plans public of abandoning current shares of treasury worth a value of more than $35 Billion to improve value of shareholder by end of 2018. It also declared a buyback of share worth 2.3 Trillion Won .
Shares of Samsung Electronics were elevating at a record high up by 1.5% while the complete market was behind by 0.3%.
“The annulment of the complete shares currently occupied by the company was not expected; and this facilitated to power share price of Samsung Electronics along with its optimistic earnings,” said Park Jung-hoon, the Fund Manger of Samsung Electronics, at HDC Asset Management.
Despite the fact that the quarter one was a burning time for the company as Chief Jay Y Lee was brushed up in a political bribery disgrace, the world’s top maker of smartphones, memory chips, and televisions still managed to grab a profitable share that holds hopes for highest earnings in this year.
Quarter one operating profit for most valuable company in Asia by market capitalization was $8.75 Billion, matching earlier guidance of the company. Revenue increased to 50.5 Trillion Won by 2%.
Damaged by the fire-prone and costly failure of Galaxy Note 7 in 2016, the revival of the mobile business and the memory chip super-cycle will set to strengthen the profitability of the company since the best result of 2013.
“Seeing forward to the quarter two, the firm anticipates to gain growth with the help of continued healthy performance combined with enhanced earnings from the business of mobiles”, mentioned Samsung just after the global introduction of the most awaited smartphone of this year—the new Galaxy S8.