Samsung Electronics Shares Surge

Samsung Electronics shares surged 7.2% on Friday, marking their largest daily gain since March 2020, following a major share buyback plan aimed at boosting shareholder value.

The announcement comes after concerns over the company’s semiconductor business, which has faced declining profits in recent quarters.

In a regulatory filing released after markets closed, Samsung (KS:005930) stated it would repurchase shares worth 10 trillion won ($7.17 billion) over the next year.

The first phase, valued at 3 trillion won, will occur in the next three months, covering 50.14 million common shares and 6.91 million preferred shares, which will be canceled to enhance value for existing shareholders.

The company’s board will decide how to deploy the remaining 7 trillion won from the buyback program, the first since 2017 when Samsung completed a 20.7 trillion won repurchase.

This move occurs during a challenging period for its semiconductor division, which saw profits plunge by 40% quarter-over-quarter. However, Samsung emphasized its focus on high-end chip production and progress in securing a major supply deal, signaling confidence in its long-term strategy.

Friday’s rally allowed Samsung to recover from its lowest levels since June 2020. Despite the significant daily jump, the stock remains down 32% year-to-date, reflecting broader investor caution in the tech sector.

The buyback announcement is seen as a bid to restore investor confidence and reaffirm the company’s commitment to shareholder returns.