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Samsung Electronics' market value tops $100 billion

Posted: 06 Jan 2006 ?? ?Print Version ?Bookmark and Share

Keywords:John Walko?

The market capitalization of Samsung Electronics exceeded $100 billion on Wednesday (Jan. 4), making the company one of only four in Asia to reach that mark.

The Korean giant's share price jumped 5.1 percent to a record 699,000 won, pushing its market capitalization to $102 billion. Samsung is now second only to Vodafone among non-U.S. technology stocks, after overtaking Nokia, Motorola and Sony in size.

Market rumors suggest the surge in the share price relates to a proposed two-for-one split of its common stock, though Samsung refused to comment on the speculation.

The company is due to report is results for 2005 on Jan. 13, and analysts suggest fourth quarter earnings will top or perhaps exceed estimates, helped by booming sales of its mobile phones and flash memories along with improved profit margins on flat-panel displays.

Samsung has nearly doubled its revenue to $57 billion in 2004, driven by surging demand for digital consumer products. The shares gained 46 percent last year and rose more than 18-fold since the 1997.

According to recent reports from Korea Investment & Securities, Samsung spent more than $50 billion on research and production facilities over the past five years, increasing the portion of research spending and capex to 15 percent of its 2005 sales.

The company said in November it planned to double its annual revenues by 2010, by increasing the number of its leading market share products from the current eight to more than 20.

By market capitalization, General Electric remains the world's most valuable company, at $379 billion based on its share price on the last day of trading in 2005.

Outside the United States, mobile network operator Vodafone is the most valuable technology company, valued at $137 billion.

- John Walko
EE Times

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