After posting records of its annual profit, Samsung Electronics Co Ltd has announced that its first stock split adding that the division was driven by what she described as memory chip “super-cycle.”
The tech giant’s stock split is the latest in a series of moves to boost shareholder returns, including 5.8 trillion won ($5.4 billion) in annual dividends and 9.2 trillion won in share buybacks and cancellations in 2017.
The firm’s bounty has encouraged investors to hold shares despite concerns that the memory business may be peaking.
Analysts say the stock split will open the door to retail investors; boost liquidity and sustain the increase in supplies.
Samsung fund manager at LS Asset Management Kim Sung-soo said “The stock split comes as a surprise to me,” “This will not have an impact on the company’s fundamentals, but it will increase the supply of the stock and have a positive impact on shares.”
The global leader in televisions, memory chips and smartphones brought home an annual operating profit of 53.7 trillion won ($50.2 billion) in 2017, outstripping the previous record of 36.8 trillion won in 2013.