Samsung Group’s total market cap falls 11.95%

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Samsung Group’s total market cap falls 11.95%

Samsung Group has lost more than 56 trillion won ($49.9 billion) in market value this year as its flagship Samsung Electronics and its biopharmaceutical shares have struggled.

According to a Nov. 14 study by FnGuide, the total market capitalization of all 16 listed Samsung companies shares’ amounted to 418.3 trillion won. This is nearly 56.8 trillion won less than the 475.1 trillion won at the end of last year, or 11.95 percent smaller.

Despite continuous record-breaking performances thanks to robust semiconductor exports, Samsung Electronics saw its market capitalization shrink 13.94 percent compared to the end of last year.

The Samsung Group flagship company’s market capitalization as of Nov. 14 stands at 283.9 trillion won, a nearly 46 trillion won loss when compared to 328.9 trillion won at the end of last year.

In May, Samsung Electronics proceeded with a stock split, setting the stock price at the affordable 50,000 won per share in an effort to encourage more retail investors to own the company’s stocks.

However, since then, the value of Samsung Electronics has fallen 15 percent, trading in the 44,000 won range.

Samsung Electronics broke new records in the third quarter when its operating profit amounted to 17.57 trillion won for the first time, up 20.33 percent compared to the same period a year ago, largely thanks to robust semiconductor sales.

It was also the company’s 11th-straight quarter of record operating profit.

“We expect the global semiconductor market will slightly dip [next year], which would be the first time in seven years,” said Lee Seung-woo, Eugene Investment & Securities researcher. “We expect Samsung Electronics’ operating profit to shrink roughly 14 percent.”

The controversial Samsung Biologics has seen 2.4 trillion won of market capitalization vanish during the same period, from 24.5 trillion won at the end of last year to 22.1 trillion won.

Samsung Biologics is the second-largest among Samsung Group stocks traded on the Korean exchange. It ranks 7th by market capitalization on the benchmark Kospi. However, the biopharmaceutical company’s stock transaction has been suspended since Nov. 14, after the Financial Services Commission reported Samsung Biologics to prosecutor’s office for deliberately violating accounting regulations after inflating its value in 2015 ahead of its public listing the following year.

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