Samsung Electronics said it will announce details of a shareholder-return plan
at the end of January, a delay that helped wipe out earlier gains and sent the
stock down as much as 6.6%. The absence of immediate payout measures in the
results disappointed investors. The move contrasts with SK Hynix, which on
Wednesday posted strong results and unveiled about $45 bln of additional
shareholder returns. Weaker-than-expected profitability in Samsung’s chip unit
and a roughly 60% increase in capital expenditure this year also weighed on
sentiment, leaving uncertainty over how much cash will be directed to investors
versus new capacity. Analysts said the postponement is disappointing and could
prompt short-term rotation into peers with clearer return plans, such as SK
Hynix or Micron.
