Funds with over 1 billion KRW AUM achieve 1.24% 1-month return... Strong performance by Samsung SDI and Sambu effective
[Asia Economy Reporter Song Hwajeong] Although Samsung Electronics' stock price continues to underperform, Samsung Group stock funds are showing solid returns and holding their ground. The strong performance of top market cap stocks Samsung SDI and Samsung Biologics appears to have helped defend the group stock funds' returns.
According to financial information provider FnGuide on the 22nd, the recent one-month return of 23 Samsung Group stock funds with assets under management exceeding 1 billion KRW recorded 1.24%. During the same period, other group stock funds posted negative returns (-1.02%), and the KOSPI fell by 0.77%.
Considering that Samsung Electronics, the representative stock, declined by 1.75% during this period, Samsung Group stock funds performed relatively well. The weakness of the leading stock was offset by Samsung SDI and Samsung Biologics. Over the past month, Samsung SDI rose 7.64%, and Samsung Biologics increased by 5.5%. Samsung SDI's stock price rose amid the recent strength of K-battery related stocks and expectations of strong second-quarter earnings. Choi Boyoung, a researcher at Kyobo Securities, said, "Samsung SDI is expected to record consolidated second-quarter sales of 3.3431 trillion KRW, up 30.7% year-on-year, and operating profit of 273.6 billion KRW, up 163.9%. This will exceed the recently raised market consensus of 251.1 billion KRW, achieving results beyond elevated expectations." In particular, the medium-to-large battery division is expected to turn profitable.
Samsung Biologics is expected to see sales growth in the second half due to increased utilization rates at its third plant. Seo Geunhee, a researcher at Samsung Securities, analyzed, "The utilization rates of plants 1 and 2 are at 80%, and plant 3 at 70%. As the rebound from orders secured in the first half for plant 3 begins in earnest, sales expansion due to increased utilization of plant 3 is expected to accelerate in the second half. The valuation burden will also gradually ease with earnings growth."
Although holding steady, for Samsung Group stock funds to gain momentum, the recovery of Samsung Electronics' stock price is essential. Despite recording an earnings surprise that significantly exceeded market expectations for the second quarter, the stock price remains stagnant. On the previous day, Samsung Electronics' stock price slipped to around 78,000 KRW for the first time in about two months, continuing its failure to stabilize above the 80,000 KRW level.
Experts have high expectations for Samsung Electronics. They believe that amid expanding uncertainties, Samsung Electronics is the only reliable stock. Kim Yangjae, a researcher at KTB Investment & Securities, said, "Samsung Electronics is a comprehensive component internalization company ranging from semiconductors to displays. Based on the strong performance of the components segment and rising market share in the set business, it is the most stable investment target amid expanding uncertainties."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
