BlockBeats News, July 30th, Citrini analyst Jukan quoted a report from South Korea's Meritz Securities, stating that Samsung Electronics is expected to announce a shareholder return plan in the coming weeks that rivals the aggressive program from 2017—marking the first restart of an "early execution plan" in nearly a decade. The specific measures include increasing dividends, no longer deducting M&A expenses when calculating free cash flow, and returning 50% of free cash flow to shareholders in full.
The Meritz report pointed out that Samsung's management has acknowledged that the recent stock price decline has undervalued its stock, so initiatives such as buybacks and cancellations that directly enhance shareholder value are expected to be implemented first. Samsung Electronics was previously under pressure in July due to a pullback in the memory chip sector and structural factors such as leveraged ETF liquidation, with the current stock price still significantly discounted from the high point in June. If this return plan is realized, it will signify a structural shift in Samsung's capital allocation strategy from conservative expansion to shareholder returns.
