Samsung Electronics

Chinese smartphone manufacturers are stepping up their efforts to gain a foothold in Europe and sell high-quality devices. The Shenzhen-based brand Realme has increased its sales in Europe by 275% and is aiming to increase its market share from 4% to over 10% in the next three to five years. Despite the challenges associated with the market launch in Europe, Realme sees great potential. Other brands such as Honor and Oppo are also planning to expand their premium offerings. What do you think about the competition between Chinese brands and established companies such as Apple $AAPL (+0,05%) and Samsung $005930 in Europe?

Samsung Electronics Q3 2024 $005930

Financial performance

• Revenue: The company's total revenue increased by 7% quarter-on-quarter to KRW 79.1 trillion in the third quarter of 2024
• Operating profitOperating profit : Operating profit decreased by KRW 1.3 trillion quarter-on-quarter to KRW 9.18 trillion, with an operating margin of 11.6
• Net profitNet profit increased to KRW 10.10 trillion, corresponding to a net profit margin of 12.8%.

Balance sheet overview

• Total assetsReached KRW 491.3 trillion as of September 30, 2024.
• LiabilitiesAmount to KRW 105.0 trillion, which corresponds to a debt ratio of 4%.
• EquityKRW 386.3 trillion.

Details of the profit and loss account

• Gross profitGross profit amounted to KRW 30 trillion, which corresponds to a gross margin of 37.9%.
• Selling, general and administrative expenses (SG&A)Increased to KRW 20.8 trillion, accounting for 26.3% of sales.

Cash flow overview

• Cash flow from operating activitiesKRW 22.2 trillion.
• Cash flow from investing activitiesKRW 14.3 trillion, mainly due to investments in property, plant and equipment (PP&E).
• Cash flow from financing activitiesminus KRW 2.18 trillion.

Key figures and profitability ratios

• Return on equity (ROE): 11 %.
• EBITDA margin: 27 %.
• Liquidity ratio (current ratio): 252 %.

Segment information

• MX Division: Recorded growth of 13 % due to new smartphone models.
• DS Division: Sales increased by 3 %, driven by demand for high-quality memory products.
• Display segment: Sales increased by 5 % thanks to new product launches.

Competitive position

• Brand equitySamsung Electronics ranked 5th in Interbrand's list of the top 100 global brands, with a brand value of USD 100.8 billion.

Forecasts and management comments

• Forecast Q4: Expected improvement in semiconductor business, with focus on value-added products.
• Outlook 2025: Expects positive market development, with strategic focus on AI and premium segments.

Risks and opportunities

• Risks: Macroeconomic uncertainties, exchange rate effects and competition in the mass market segment.
• Opportunities: Growth opportunities in the areas of AI and high-density storage products as well as expansion into the IT and automotive sectors.

Summary of the results

Samsung Electronics delivered a strong performance in the third quarter of 2024, driven by new product launches in the MX and DS divisions. Despite a decline in operating profit caused by one-off costs, the company maintained solid profitability metrics. The balance sheet remains healthy, with a low debt-to-equity ratio, and operating cash flow is strong. Going forward, Samsung is focusing on growth through AI innovation and high-quality products, while monitoring risks from macroeconomic factors and competition.

Positive aspects

• Sales growthSamsung Electronics achieved sequential sales growth of 7% to KRW 79.1 trillion in the third quarter of 2024, driven mainly by strong performances in MX and DS.
• Brand awareness: The company consolidated its position as a #5 brand in Interbrand's top 100 global brands and increased its brand value by 10% to USD 100.8 billion. This underlines Samsung's strong brand loyalty and market presence.
• Cash flow from operating activitiesCash flow from operating activities remained robust at KRW 22.2 trillion, demonstrating Samsung's high operational efficiency and strong cash generation capacity.
• Segment performance: The MX division recorded impressive growth of 13%, supported by the launch of new smartphone models, contributing significantly to overall sales.
• Strategic focus on AISamsung is strategically focusing on AI and high-value products and plans to increase sales of AI-powered home appliances and enhance AI connectivity experiences. This positions the company well for future growth in new technologies.

Negative aspects

• Decline in operating profitOperating profit decreased by KRW 1.3 trillion to KRW 9.18 trillion compared to the previous quarter, mainly due to one-time costs including provisions for incentives in the DS division.
• Currency effectThe appreciation of the Korean won against the US dollar impacted operating profit by approximately KRW 0.5 trillion and affected the components business.
• Increased selling, general and administrative (SG&A) costsSG&A costs increased to KRW 20.8 trillion and now represent 26.3% of sales. Without targeted control, these costs could weigh on margins.
• Conservative outlook for Display segmentAlthough sales have increased, the outlook for the Display segment remains cautious due to intense competition, which could affect profitability.
• Inventory adjustmentsThe Mobile segment faced challenges in inventory adjustments, resulting in lower demand and an imbalance between supply and demand, especially in the Chinese market.

Samsung
$005930 has placed orders with ASML
$ASML (+0,01%) for its planned chip factory in Texas indefinitely due to weak demand.

The 17 billion dollar project in Taylor has so far failed to attract any major customers, prompting other suppliers to withdraw their local staff. These delays are a setback for Samsung's ambition to produce specialty chips for mobile and artificial intelligence and enter contract manufacturing, a market currently dominated by TSMC. -Handelsblatt

Photo: Image: Asia Times Files / AFP

$QCOM (+0,04%) - The Next Generation

Qualcomm is responding to the growing use of artificial intelligence (AI) in smartphones with a new generation of processors. The world's largest

supplier of cell phone chips announced that it would also be using technologies originally developed for the desktop processor "Snapdragon Elite X" in its products for mobile devices. These were used to execute some of the calculations of AI programs directly on the smartphone. Customers for the Snapdragon 8 Elite include cell phone manufacturers such as Samsung $005930 and Xiaomi $1810 (+2,81%) .

The ASML share fell 20% after after poor quarterly figures and a lowered outlook. Major customers such as Samsung and Intel are buying fewer machines because they are postponing investments. Buy, hold or sell ASML? What do you think?

In the Podcast episode 61 "Buy High. Sell Low" we talked about ASML in detail. Link in the profile description.

$ASML (+0,01%)
$INTC (+0,25%)
$005930
$AMD (+0,18%)
$NVDA (+0,09%)
$2330
$AMAT (-0,02%)
$MU (+0,08%)
$KLAC (-0,05%)
$LRCX (+0,26%)

Share march, 30km route with 35 share companies

First day of vacation, 32°C and a 30km walk towards Stuttgart. I was able to find over 35 stock companies along the route.

Highlight, $BTC (+1,13%) Bitcoin logo on the wheel arch of the Jeep.

In addition to the car brands, $MBG (+0%)
$DTG (+0%)
$VOW (+0,03%)
$BMW (+0%)
$VOLV B (+0,04%)
$TSLA (+0,28%)
$1211 (-1,73%)
$P911 (+0,35%)
$F (+0,24%)
$8058 (-0,08%) I was able to discover numerous other companies that were new to me.

New for me was $6971 (-0,45%) Kyocera, a manufacturer of electronic devices from Japan and $WLK (+0%) Westlake Chemical from the USA.

From Germany there were also $SIX2 (+0%) Sixt $DTE (+0,02%) Telekom $TUI1 (+0%) Tui $AGCO (+0,1%) (Fendt) $256940 Eberspächer (supplier to the automotive industry) $SIE (+0%) Siemens $EBK ENBW $DHL (+0%) Post and $ALV (+0%) in the process.

Other companies:

$CAT (+0,07%) Caterpillar $HEIA (+0%) Heineken $HOG (+0,06%) Harley Davidson $PM (-0,06%) Philip Morris $NKE (+0,09%) Nike $AAPL (+0,05%) Apple $005930 Samsung $UPS (-0,02%) UPS $SHEL (+0%) Shell $V (+0,15%) Visa $MA (+0,14%) Mastercard $KER (+0%) Kering

$KO (+0,21%) Coca-Cola $QSR (+1,23%) Restaurant Brands (Burger King)

$O (-0,21%) Reality Income (leased to Decathlon)

Would you have recognized everything? It's interesting what you discover when you consciously look around.

Out of interest, please link if you post something similar 🫡 or use the #aktienmarsch

07.08.2024 + China's companies stockpile AI chips from Samsung + AIRBNB misses expectations and outlook + Siemens Energy reduces losses + Japan's central bank inspires confidence + Super Micro Comp. misses expectations

Airbnb $ABNB (+0,13%) posted EPS of USD 0.86 in the second quarter of 2024. This was less than analysts had expected (USD 0.91). A year ago, the company reported earnings of USD 1.02 per share. Q2 turnover amounted to 2.75 billion US dollars, according to the press release. Experts had forecast a figure of 2.74 billion US dollars, after Airbnb had generated 2.484 billion US dollars in the same quarter of the previous year. On the NASDAQ, Airbnb shares reacted to the presentation of the financial statements with a temporary drop of 13.67 percent to 112.64 US dollars.

The energy technology group Siemens Energy $ENR (+0%) made further progress in the third quarter and reduced its losses. The company benefited from good business in its grid business, which was able to significantly increase revenue and earnings. In the three months to the end of June, sales rose by 18.5 percent on a comparable basis to 8.8 billion euros, as the company announced in Munich on Wednesday.

From Japan, where the leading index Nikkei-225 plummeted by more than twelve percent on Monday in the wake of the stronger yen and fears of interest rate hikes, the central bank has now sent out reassuring signals. The central bank would not raise interest rates if the market proved unstable, it said. This was enough to give share prices in Tokyo a further significant boost.

Super Micro $SMCI posted EPS of USD 6.01 in the fourth quarter of the 2024 financial year. Experts had expected a jump to USD 8.136 per share after USD 3.67 per share in the same quarter of the previous year. For the year as a whole, the company posted earnings of USD 21.73 per share. After USD 12.09 per share in the previous fiscal year, analysts' forecasts were USD 23.89. According to the statement, turnover in the past three months amounted to USD 5.308 billion, compared to USD 2.185 billion in the same quarter of the previous year. Experts had previously expected sales to increase to 5.327 billion US dollars. Super Micro puts the 12-month turnover at 14.943 billion US dollars. This is in line with analysts' estimates of 14.94 billion US dollars.

Due to the threat of a US embargo, Chinese companies are stocking up on a large scale according to several insiders. Samsung's $005930 high-performance memories for artificial intelligence. In the first half of the year, they bought up around 30 percent of the production of so-called HBM (High Bandwidth Memory) chips, said one of the people familiar with the matter.

https://www.n-tv.de/wirtschaft/der_boersen_tag/Bunkern-Chinas-Firmen-KI-Chips-von-Samsung-article25139343.html

Wednesday: Stock market dates, economic data, quarterly figures

ex-dividend of individual stocks

Intel USD 0.13

Ford Motor USD 0.15

Quarterly figures / company dates USA / Asia

06:00 Mazda quarterly figures

08:00 Sony | Honda quarterly figures

09:00 Softbank quarterly figures

22:05 Walt Disney quarterly figures

Quarterly figures / Company dates Europe

07:00 Commerzbank | Siemens Energy | ABN Amro | Kontron Quarterly figures

07:30 Sixt | Continental | Gea Group | Voestalpine | Novo Nordisk Quarterly figures

07:40 Elringklinger | Zeal Network | Ahold Delhaize quarterly figures

07:50 Süss Microtec half-year figures

08:00 Beiersdorf | Puma | A.P. Moeller-Maersk quarterly figures

08:30 Siemens Energy PK

09:00 Commerzbank Analyst Conference | Beiersdorf PK

09:30 Gea Group PK

10:00 Siemens Energy Analyst Conference

10:30 Commerzbank | Sixt | Voestalpine PK

12:30 Continental Analyst Conference

14:00 Gea Group | Elringklinger Analyst Conference

18:00 Freenet quarterly figures

Economic data

• 08:00 DE: Trade balance June trade balance calendar and seasonally adjusted PROGNOSE: +21.5 bn Euro previous: +24.9 bn Euro Exports PROGNOSE: -1.5% yoy previous: -3.6% yoy Imports PROGNOSE: +2.5% yoy previous: -6.6% yoy
• 08:00 DE: Manufacturing production June seasonally adjusted PROGNOSE: +0.9% yoy previous: -2.5% yoy

A federal judge has ruled that Google's
$GOOGL (+0,98%) payments of 26 billion dollars to set its search engine as the standard on smartphone web browsers violates the antitrust law of the USA 🇺🇸.

Judge Amit Mehta found that these payments effectively prevented other competitors from succeeding in the market.

US antitrust-authorities accuse Google of illegally maintaining a monopoly in the field of online search and related advertising.

The government stated that Google had allowed Apple $AAPL (+0,05%), Samsung
$005930 and others billions over decades in order to be able to advertise on smartphones and web browsers to be given preferential placement on smartphones and web browsers.

The EU will Microsoft's ($MSFT (+0%) ) 13 billion US dollar investment in OpenAI under the merger rules as there is insufficient evidence of an "acquisition of control".

However, an antitrust investigation could be initiated to investigate possible adverse effects on competition through exclusivity agreements to be examined. The EU is also investigating the contract between Google ($GOOGL (+0,98%)) and Samsung ($005930) on AI systems in smartphones.

Hello everyone,

It's time for another little milestone post - today I reached a portfolio value of €25,000.

I know many people don't like it, but that doesn't matter for now.

I reached my last milestone, the €10,000 mark, about 10 months ago. A lot has happened since then.

Thanks to a change of employer last year, I managed to increase my savings rate to €1,200+.

Of this, €140 is invested in ETFs.

I currently have a significant overhang in individual shares. It all started with dividend stocks. However, dividends now only play a very minor role in my investment decisions.

My aim is to invest for the future in the long term, and I'm enjoying the topic more and more. Although I started early and had to learn the hard way here and there, I am now very satisfied with the development of the past 2-3 years. At the age of 26, many people haven't even started thinking about the future and investing.

I will probably use up the tax-free allowance of €1,000 for the first time next year at the latest, which is not a direct goal (I don't want to / have to use up this amount tomorrow), but symbolizes another stage that I have mastered. (It's a shame that this is set so low for small investors)

In my opinion, only 2 sectors are now missing from my portfolio - pharmaceuticals and commodities / mining, with my selection probably (as of today) limited to $JNJ (+0,01%) and $RIO (+0,12%) would fall.

I would also like to invest in a few Asian companies, which are currently on my watchlist. $005930
$7974 (-0,98%)
$005380
$4507 (+1,17%)
$8001 (-0,31%) currently on my watchlist.

However, my portfolio shouldn't get much bigger and I will probably invest a little more in ETFs and reduce the savings rate for individual shares.

I look forward to any constructive feedback from you. :)