|Bid||50,100.00 x 0|
|Ask||50,200.00 x 0|
|Day's Range||49,900.00 - 50,200.00|
|52 Week Range||36,850.00 - 50,200.00|
|Beta (3Y Monthly)||1.18|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 31, 2019|
|Forward Dividend & Yield||1,416.00 (2.88%)|
|1y Target Est||54,903.00|
(Bloomberg) -- South America controls about 70% of the world’s reserves of lithium, the metal used in rechargeable batteries for mobile phones and electric vehicles, but none of the infrastructure needed to put it to work.Lithium refining and battery-assembling facilities could help kick start industries in economies that are largely dependent on commodities for revenue, putting them at risk from sharp price swings. But so far, public and private initiatives in Argentina, Bolivia, Brazil and Chile have failed to deliver even a single lithium cell factory. And none are set to be built through 2025.Chile, the world’s second-largest lithium producer behind Australia, offers perhaps the best example of an effort gone off track. A $285 million lithium-cell project by two Korea-based companies was canceled in June when plunging lithium prices undercut government incentives on the metal. Meanwhile, a local company that assembles batteries using components from abroad is struggling to get lithium cells to support their sales in Chile.“The size of the opportunity is huge,” said James Ellis, the head of Latin America research at BloombergNEF. “It makes sense to try to move up the value chain. But when you look at what’s planned globally, there are no battery manufacturing assets in Latin America.”Other countries in the region face their own challenges. Here’s a breakdown:ArgentinaThe third-largest lithium producer also saw a state-sponsored initiative stall.Last year, Italy’s Seri Industrial SpA formed a joint venture with state-owned JEMSE, or more formally the Jujuy Energy and Mining State Society. The plan was to build a plant to make lithium cathodes and cells, and assemble battery parts, using raw lithium mined in Argentina’s Jujuy province.But Argentina’s economic crisis and the possibility that Peronist candidate Alberto Fernandez could win the upcoming presidential elections has, in the words of JEMSE President Carlos Oehler, “cooled all investment projects in Argentina, including building a battery factory.”The land and permits are ready, Oehler said, “and we were starting to look for financing, but the project is frozen now.”BrazilIn Latin America’s biggest economy, former Tesla Inc. executive Marco Krapels and former SunEdison Inc. executive Peter Conklin founded MicroPower-Comerc with the initial goal of providing rechargeable batteries to commercial and industrial facilities. But Brazil offers almost no government subsidies for renewable energy, and import taxes add about 65% to the cost of the batteries.That’s driven the company, which is backed by Siemens AG, to consider buying components abroad and assembling them in Brazil as a way to lower their costs.While the nation’s market for big batteries barely exists, Krapels sees opportunity in a place with an occasionally unstable power grid and a robust market for wind and solar. “This is not for the faint of heart,” he said in an interview last month. “But I think there’s an advantage on being the first to move into a market.”BoliviaBolivia hasn’t managed to produce significant volumes of lithium or lithium products. But it is home to the world’s largest salt flat, covering 6,437 kilometers (4,000 square miles), and holding more than 15% of the world’s unmined lithium resources.A pilot plant run by state-owned Yacimientos de Litio Bolivianos, or YLB, produced close to 250 tons of lithium carbonate in 2018, and the country’s goal is to generate 150,000 tons within five years, partnered with German and Chinese companies. If it succeeds, Bolivia would become one of the top-producing nations.Last month, Industrias Quantum Motors SA began sales of the first car ever built in the country, an electric vehicle that answered President Evo Morales’s once-cited wish to see a lithium-powered car “made in Bolivia.”The problem? Eager buyers aren’t allowed to drive the cars on Bolivia highways until the government can change some existing regulations.ChileThe lithium producer tried to encourage battery companies to build factories in the country by forcing miners to sell lithium at a discount. That attracted interest from giants including Samsung SDI Co. and Posco in 2017, when lithium prices were at historic highs.But since then, prices have fallen by a third, and earlier this year the companies abandoned their plans to build.Even those embarked in less ambitious initiatives are facing hurdles. In Chile’s south, Andesvolt currently imports battery components from abroad and assembles them in the southern city of Valdivia. It supplies lithium-ion batteries for electricity companies including Enel Americas SA, which installs them as back-up power in industrial, commercial and residential facilities across the country.Andesvolt expects to produce 1,000 kilowatt-hour this year, up from 200 kilowatt-hour last year. But he is finding it so difficult to import lithium cells that he is considering building South America’s first lithium-cell factory. Dealing with the hiccups of importing the cells from China is just too much, founder and Chief Executive Officer David Ulloa said.Lithium cells are highly volatile and can explode if not handled properly, which means shipping companies are often reluctant to transport them. Even when they do, there’s no guarantee the cargo will arrive on time -- or arrive at all.“We’ve seen it all,” Ulloa said in an interview. “Once a Chinese supplier didn’t do any of the paperwork needed for Chilean customs and later offered to disguise the cargo as shoes -- we’re a serious company, we couldn’t accept that and we lost that shipment.”To contact the reporter on this story: Laura Millan Lombrana in Santiago at firstname.lastname@example.orgTo contact the editors responsible for this story: Luzi Ann Javier at email@example.com, Reg Gale, Steven FrankFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
A bet Samsung made six years ago is costing it dearly. The world’s biggest display maker opted not to develop large organic light-emitting diode (OLED) television screens, reckoning the ultra-high definition technology too costly. Samsung, faced with the unthinkable possibility of buying screens from LG for its TVs, is investing $11bn in the next generation displays over the next six years.
(Bloomberg) -- Samsung Display Co. plans to spend 13.1 trillion won ($11 billion) developing and building next-generation displays, responding to a flood of supply and price pressure from fast-moving Chinese rivals.In an announcement event attended by Korean President Moon Jae-in and Samsung Electronics Co. Vice-Chairman Jay Y. Lee, the investment was presented as a move to reorganize the display industry while maintaining Samsung’s global lead and Korea’s established dominance. The government will invest about 400 billion won into next-generation displays to propel that objective, Moon said.The Samsung unit will build a quantum-dot display production line in Asan, according to a company statement, which will begin operations from 2021 with an initial monthly capacity of 30,000 panels larger than 65 inches. Production will then scale up from there, with a long-term development plan that stretches out to 2025. The investment will help create 81,000 jobs, the company added.Samsung and cross-town rival LG Display Co. are grappling with a surge of competition from Chinese suppliers such as BOE Technology Group Co., which in recent years have ramped up liquid crystal display-making capacity and are increasingly making inroads into next-generation screens. To offset a decline in margins and loss of clients, Samsung is moving forward with development of quantum-dot displays. Its stock ended Thursday largely unchanged.Samsung’s heir and de-facto leader Lee has pledged to invest for the long-term in the display business, which is one of the three main pillars -- alongside memory chips and smartphones -- in which the Korean tech champion is world leader. The company is making a huge bet on the market as the business environment deteriorates and a trade spat between Korea and Japan creates uncertainty around the supply of chemicals and components necessary to manufacture advanced displays. This week, Samsung reported a quarterly profit decline of more than 50%, though that was less of a fall than anticipated.Read more: Samsung Beats Estimates as Demand Picks Up for Note, IPhoneKorea’s largest company is the world’s foremost producer of high-margin OLED displays, but hit a snag last year when orders from Apple Inc. underwhelmed after the marquee iPhone XS fared worse than expected. It remains to be seen how enticing the new iPhone 11 Pro models will be to consumers over the critical holiday shopping season, though analysts are growing optimistic on demand.Away from displays, the unpredictability surrounding tensions between the U.S. and China -- where Samsung earns a big chunk of revenue -- has led to a downturn in the chip industry at a time when smartphone demand tapers off and the pace of data center construction decelerates.(Updates with Samsung’s shares in the fourth paragraph. An earlier version of the story corrected the timeframe for production capacity.)To contact the reporter on this story: Sohee Kim in Seoul at firstname.lastname@example.orgTo contact the editors responsible for this story: Peter Elstrom at email@example.com, Edwin Chan, Vlad SavovFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The world’s biggest display maker will build a production line in central South Korea to produce large-size organic light-emitting diode (OLED) TV panels — above 65 inches — in 2021. Samsung’s bet on OLED technology comes as it grapples with growing price pressure from low-cost Chinese rivals in the LCD business.
Apple Inc supplier Samsung Display said on Thursday it will invest 13.1 trillion won ($11 billion) on facilities and research to upgrade a production line, as it battles severe oversupply due to weak global demand for smartphones and TVs. The unit of Samsung Electronics Co Ltd said that by 2025 it will spend 10 trillion won on facilities and the rest on research and development to produce more advanced display screens. The investment announcement comes at a time when South Korea's panel makers have been struggling to cope with slower liquid crystal display (LCD) demand for TV and smartphones as well as rising competition from Chinese rivals and a shift by major clients to organic light emitting diode (OLED) panels.
Investing.com - South Korea-listed Samsung (KS:005930) Display will invest as much as 13.1 trillion won ($11.0 billion) on facilities and research on next-generation display technology, the country’s presidential office said on Thursday.
Samsung just announced its third-quarter guidance. The company expects an operating profit of about 7.7 trillion Korean won, or $6.43 billion.
U.S.-China trade talks are at the forefront, but investors are also monitoring the ongoing Brexit discussions and debating the degree of easing required from the Federal Reserve following the recent string of weakening U.S. activity indicators and the slowing in the labor market.
Strong sales of Samsung Electronics' Galaxy Note 10 smartphone series are limiting forecast profit falls at the South Korean tech giant, raising hopes it is getting back on a growth track after years of moribund sales. Samsung, the world's largest smartphone maker, is powering ahead with the launch of 5G phones and $2,000 foldable handsets as it heats up competition with rivals U.S. Apple and China's Huawei following a battery explosion scandal in 2017 that hurt sales. There are also early signs that the global memory chip business, a key driver of Samsung's profit, will stabilise next year after prices were eroded by a weak global economy and slower spending by key data centre customers.
(Bloomberg) -- Samsung Electronics Co.’s de facto leader, Jay Y. Lee, plans to give up his board seat after his directorship expires late October as he prepares for another trial over alleged bribery, a person familiar with the matter said.The billionaire heir won’t seek to extend his three-year term on the board of the tech behemoth when it ends Oct. 26, but will remain at the helm of the world’s largest chip and smartphone maker, the person said, asking not to be named because of the sensitivity of the issue. Lee will instead continue to run Samsung Electronics with the title of vice chairman though its board will stay central to overall management, the person added.The 51-year-old is putting some distance between himself and Korea’s largest conglomerate ahead of a re-trial over bribery charges that could land him back in jail. He faces additional allegations in a landmark case that inflamed popular anger over the chaebols that control the country’s economy and helped bring down former president Park Geun-hye. Lee may be pre-empting a backlash over his re-seeking a board position -- which requires shareholder approval -- while contesting a months-long legal case.Read more: Samsung’s Lee Faces a Retrial That Could Put Him Back in JailWhen Lee joined the board in 2016, it was deemed a symbolic move to step out from under the shadow of his ailing father and consolidate his power over Samsung. His ascension was intended to shore up his position as a leader who drives strategic initiatives such as mergers and acquisitions.Yet months later, Lee’s fortunes reversed. Caught up in a nationwide scandal, Lee spent about a year in prison battling accusations that he offered horses and funds to a confidante of then-president Park in return for support of a 2015 merger that cemented his control over the Samsung group.Since his release in 2018, Lee has been busily re-cultivating an image as the face of successful Korean business. He joined President Moon Jae-in on visits to India and Pyongyang, and expanded his network via meetings with financier Mohammed bin Salman and Indian tycoon Mukesh Ambani.The only son of Chairman Lee Kun-hee will remain Samsung’s overseer for the time being, grappling with a laundry list of tasks including steering Samsung through a severe industry downturn. The company’s operating income fell more than 50% in the September quarter, though that was less of a decline than anticipated.As Lee has stressed in a series of press releases, the company needs to continue to invest in future businesses such as logic chips and even sixth-generation mobile networks to overcome growing uncertainty.Why Samsung’s Lee Needs to Do His Prison Time: Michael SchumanTo contact the reporter on this story: Sohee Kim in Seoul at firstname.lastname@example.orgTo contact the editors responsible for this story: Edwin Chan at email@example.com, Peter ElstromFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Asian shares inched up on Tuesday, with Chinese shares making decent gains after a week-long holiday, though investors remained cautious over U.S.-China trade talks after President Donald Trump said a quick deal was unlikely. European shares were expected to follow, with major European stock futures including pan-European Euro Stoxx 50 futures trading up 0.15%-0.2%.
Samsun forecast a smaller-than-expected decline in third quarter profits Tuesday, as solid sales for its flagship Galaxy Note 10 smartphone and a nascent turnaround in semiconductor demand looks to have stabilized earnings at the world's biggest chipmaker.
Samsung Electronics has projected that third-quarter profit fell for a fourth straight quarter, weighed down by lower memory chip prices but beating expectations amid signs of a chip cycle recovery. Operating profit at the world’s largest maker of microchips and smartphones fell 56 per cent to Won7.7tn ($6.4bn) in the July-September period compared with the same quarter a year ago, the company said on Tuesday. Sales fell 5.3 per cent to Won62tn, Samsung said.
(Bloomberg) -- Samsung Electronics Co. posted earnings that handily beat analyst estimates as stronger smartphone demand offset price declines in the memory chip business.Operating income was 7.7 trillion won ($6.4 billion) in the three months ended September, compared with the 6.97 trillion won analysts had forecast, according to estimates compiled by Bloomberg. Still, that is a profit decline of more than 50% for the Suwon, South Korea-based company.Samsung, the world’s largest producer of mobile phones and smartphone displays, is benefiting from solid demand for its Note 10 and for Apple Inc.’s iPhone 11 Pro, which uses the company’s OLED displays. Yet, the memory chip business has been its most profitable and uncertainties there have lingered because of the ongoing U.S.-China trade war and Japanese restrictions on the export of materials essential for chip and display production.“It’s better-than-expected results as mobile business made a huge improvement,” said Park Sung-soon, analyst at Cape Investment & Securities.Shares rose as much as 1.4% and had climbed 23% this year through Monday’s close.Sales for the third quarter were 62 trillion won, beating the average projection compiled by Bloomberg of 61.14 trillion won. Samsung won’t provide net income or break out divisional performance until it releases final results later this month.Samsung’s new high-end smartphones, including the Galaxy Note 10 and Galaxy Fold, helped cushion profit declines in the memory business. Its display business is recovering from a slump, with strong demand for OLED displays for smartphones such as Apple’s iPhone 11.The volatile business environment due to the U.S.-China trade war and South Korea-Japan spat has fueled uncertainties and made it harder for the market to gauge demand. As Japan’s export curbs on key materials used in chips and display production kicked in early July, clients raised their inventories of memory components to minimize risk, according to a note from TrendForce on Sept 26.“The stock-up demand was stronger than expected this third quarter due to the seasonal tailwinds and the pulling forward of end product shipments ahead of a possible new round of U.S. tariff increases in December,” said TrendForce. “Consequently, the overall trend of contract prices also shifted from decline to stability during the third quarter.”Analysts raised operating profit estimates in recent weeks as dynamic random-access memory shipments improved in the third quarter. Citi estimated Samsung would report semiconductor profits slightly higher than its previous estimates, supported by a 30% increase in DRAM shipments quarter-on-quarter, despite a 20% drop in DRAM prices.Concerns over the impact on the production of chips and displays have eased among some market watchers as Japan approved shipments of key materials to Samsung. Liquid hydrogen fluoride -- a highly purified chemical used to refine chips in production -- has not been approved for shipment to South Korea so far, but multiple reports and analysts indicate a local supplier may be able to provide substitutes.“Although DRAM and NAND demand is recovering and shipments in the third quarter were quite robust, there is skepticism about the sustainability of the demand upturn,” said Sanjeev Rana, technology analyst at CLSA.With the trade war issues hanging over the tech industry, Micron Technology Inc. warned that the tensions may prolong a memory-chip industry slump and gave a disappointing profit forecast. Despite the cautious outlook, investors are growing more bullish on Samsung amid hopes for an end to the slide.“As inventory de-stocking cycles end at major customers, we expect the memory industry to enter a recovery stage in 2020, while the magnitude of recovery will be more gradual (especially for DRAM) relative to previous upturn cycles,” J.P. Morgan said in an Oct 3 note.In the third quarter, contract prices for 32-gigabyte DRAM server modules fell 13.8% compared to the previous quarter while those for 128 gigabit MLC NAND flash memory chips rose 12.3%, according to inSpectrum Tech Inc.(Updates with analyst comment in fourth paragraph.)To contact the reporter on this story: Sohee Kim in Seoul at firstname.lastname@example.orgTo contact the editors responsible for this story: Edwin Chan at email@example.com, Peter ElstromFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Samsung Electronics flagged slightly better than expected third quarter profit on Tuesday, helped by strong sales of its new Galaxy Note 10 smartphone series even as a slump in its memory chip business continued to weigh on earnings. Samsung, the world's largest smartphone maker, said it has sold more than 1 million of the 5G handsets in South Korea, making it the company's fastest selling flagship model at home. Analysts said that Samsung benefited from U.S. sanctions on Huawei Technologies Co Ltd that effectively bar U.S. firms from supplying its Chinese rival.
Strong sales of Samsung Electronics' Galaxy Note 10 smartphone series are limiting forecast profit falls at the South Korean tech giant, raising hopes it is getting back on a growth track after years of moribund sales. Samsung, the world's largest smartphone maker, is powering ahead with the launch of 5G phones and $2,000 foldable handsets as it heats up competition with rivals U.S. Apple and China's Huawei [HWT.UL] following a battery explosion scandal in 2017 that hurt sales. There are also early signs that the global memory chip business, a key driver of Samsung's profit, will stabilise next year after prices were eroded by a weak global economy and slower spending by key data centre customers.
Investing.com - Shares of the South Korea-listed index heavyweight Samsung Electronics Co Ltd (KS:005930) traded higher on Tuesday in Asia even after the company said its operating profit in the third quarter fell by more than 50% from a year ago.
It's known as the world's biggest maker of smartphones. But Samsung's business goes a lot further than fancy handsets - and so do its problems. The South Korean giant gave a trading update update Tuesday (October 8). It says operating profit will tumble 56 percent in the third quarter. That's actually better than forecast. But chips remain a big problem. Prices for semiconductors have tumbled amid weak demand. They fell around 25% in the first quarter of this year. Though analysts see signs that things are at least getting less bad. While chip prices are still falling, the percentage decline is forecast to slow to single digits in early 2020. Meanwhile, Samsung's mobile phone business is looking a whole lot happier. The firm says its new Galaxy 10 smartphones are selling strongly, and it has 5G and folding handsets hitting the market. Rival Huawei has inadvertently lent a hand. Its sales have stumbled following the imposition of U.S. sanctions. They may prevent it selling phones fitted with Google apps. Samsung is all too happy to mop up any consumers now hesitant about the Chinese brand.
Oct.07 -- Mark Newman, senior research analyst at Sanford C. Bernstein, talks about Samsung Electronics Co.'s financial results and outlook. Samsung posted earnings that handily beat analyst estimates as stronger smartphone demand offset price declines in the memory chip business. Newman speaks with David Ingles and Yvonne Man on "Bloomberg Markets: Asia."