Most Popular
-
1
1 in 3 Koreans live alone, family types becoming diverse
-
2
Korea, Japan finance chiefs vow to tame rampant FX market volatility
-
3
K-pop group's manager dismissed for setting up spycam in theater dressing room
-
4
Contentious grain bill put directly to plenary meeting for vote
-
5
Why is Apple Pay struggling to get purchase in Korea?
![[Today’s K-pop] BTS pop-up event to come to Seoul](http://res.heraldm.com/phpwas/restmb_idxmake.php?idx=644&simg=/content/image/2024/04/17/20240417050734_0.jpg&u=)
[EQUITIES] Galaxy Note 7 recall to cost Samsung W2tr: Samsung Securities
By 이지윤Published : Sept. 30, 2016 - 16:14
[THE INVESTOR] Samsung Electronics on Sept. 30 projected that the ongoing Galaxy Note 7 recall worldwide would cost Samsung Electronics a combined 2 trillion won (US$1.80 billion) in the coming months this year.
“We are adjusting our estimates of the third-quarter operating profit from 7.8 trillion won to 7 trillion won,” said the securities firm. “Following the Galaxy Note 7 recall, the costs will be 1.5 trillion won in the third quarter and 500 billion won in the fourth quarter.”
Despite the recall costs, the firm raised the company’s target stock price from 1.8 million won to 2 million won, citing possible shareholder-friendly policies that are expected to be announced in its third-quarter earnings report next month.
The company’s abundant cash reserves also raised expectations for the company’s stock price. As of the second half of this year, Samsung had a record 77 trillion won in cash that could be used for dividends or merger and acquisition deals.
By Lee Ji-yoon (jylee@heraldcorp.com)
“We are adjusting our estimates of the third-quarter operating profit from 7.8 trillion won to 7 trillion won,” said the securities firm. “Following the Galaxy Note 7 recall, the costs will be 1.5 trillion won in the third quarter and 500 billion won in the fourth quarter.”
Despite the recall costs, the firm raised the company’s target stock price from 1.8 million won to 2 million won, citing possible shareholder-friendly policies that are expected to be announced in its third-quarter earnings report next month.
The company’s abundant cash reserves also raised expectations for the company’s stock price. As of the second half of this year, Samsung had a record 77 trillion won in cash that could be used for dividends or merger and acquisition deals.
By Lee Ji-yoon (jylee@heraldcorp.com)
![[KH Explains] Hyundai's full hybrid edge to pay off amid slow transition to pure EVs](http://res.heraldm.com/phpwas/restmb_idxmake.php?idx=652&simg=/content/image/2024/04/18/20240418050645_0.jpg&u=20240419100350)
