RESEARCH ALERT-Goldman ups Samsung (KOREA:05930) rating
Samsung Electronics' 1999 net profit might jump 138%
May 06, 1999 - Samsung Electronics is expected to see its 1999 net profit soar by more than 138%, thanks to the recovery of memory chip prices, as well as diversification of the company's profit structure, according to LG Securities.
The brokerage anticipated that Samsung, the world's leading supplier of dynamic random access memory chips, would enjoy brisk sales from this year on, noting that the market would grow 59.7% in 2000 and 65.9% in 2001.
The Korean electronics giant supplies chips to large system manufacturers at 10% higher than the market prices, the LG report said. Also, the company has secured price competitiveness with reduced production costs.
This year, Samsung is expected to enjoy 746.8 billion won (US$622 million) in net profit and 996.5 billion won (US$830 million) in operating profits, according to LG.
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