Multiple factors put pressure on Samsung Electronics shares fell 7 consecutively

According to reports, since the 50:1 stock split, Samsung Electronics' share price has been in a downward trend, which is completely contrary to the market's previous expectations. Before the market generally believed that Samsung Electronics will attract a large number of retail investors after the stock split, and promote its stock price rise.

In the May 15 intraday trading, Samsung Electronics shares fell for the seventh consecutive day, the lowest fell to 49,100 won.

Market analysts said Samsung’s management structure issues and Samsung’s involvement in accounting fraud are one of the factors that contributed to Samsung’s stock price decline, but the market’s negative outlook on the company’s core business is the culprit for the stock’s decline. .

"The second quarter is usually the off-season of the semiconductor industry, so it is difficult for IT companies to drive up share prices during this period," said Kim Byung-yeon, an analyst at investment and securities firm NH Investment & Securities.

According to financial data company FnGuide, the market is now unanimously expecting that the Korean tech giant’s operating profit in the second quarter will be 15.8 trillion won, which is 4.5% lower than the market’s previous forecast in January.

Due to some of the reasons for the decrease in market expectations, foreign investors sold a total of approximately 950,000 shares of the company in the first week after Samsung Electronics opened shares. After the stock split, Samsung Electronics' share price dropped from several million won to 53,000 won.

Some analysts expect Samsung Electronics' share price to rebound in the second half of the year as demand for high-end displays and semiconductors grows. For example, Apple allegedly plans to release the new iPhone in the second half of this year and adopt Samsung's OLED screen.

The South Korean government’s request that Samsung resolve its complex ownership structure also put pressure on the stock.

In a meeting with South Korea’s big corporate group CEO last week, Kim Sang-jo, head of the Korea Fair Trade Commission, criticized Samsung’s current management structure, which allows Samsung’s founding family members to control a handful of Samsung’s subsidiaries. The entire enterprise group.

Kim Sang-jo has been recommending that the Samsung Group establish two holding companies, a financial subsidiary that manages Samsung, and a non-financial subsidiary that includes Samsung Electronics, before serving as the top head of the Korean antitrust agency.

Recently, Kim Sang-jo asked Samsung to establish a new control structure to develop core management decisions and business strategies for its subsidiaries. He said that this allows Samsung to no longer need to set up a controlling entity.

More:Tenco