Samsung Electronics' 40 Trillion Won Share Buyback Is Just the Beginning, Signaling Expanded Shareholder Returns

Choi Hyun-deok, CEO of MBN Gold, emphasized, "As I mentioned yesterday, this 40 trillion won buyback is not something they decided to do and then do it; it is, in a sense, just the beginning." This signifies the starting point of future shareholder return policies, with additional measures anticipated next week and in October.

This reflects the company's long-term confidence in the memory market outlook and management's determination to overcome the limitations of the cycle industry. Such a change indicates the company's proactive stance on enhancing shareholder value.

Excluding this 40 trillion won, an additional capacity of about 100 trillion won arises, with specific allocation methods to be decided at the Q3 earnings announcement at the end of October.

Companies are focusing on securing resources for future investments while also prioritizing shareholder returns. Choi Hyun-deok, CEO, commented, "First, they are leaving money available for investment. Why? Because they are expanding until 2028, aren't they?" The plan is to use 50% of the anticipated 300 trillion won profit by 2027 for shareholder returns, while also sufficiently securing expansion costs for after 2028.

Choi Hyun-deok, CEO, emphasized, "Samsung Electronics and Hynix saying they will buy back their own shares isn't about saving the KOSPI market; it means buying our stock." Due to the impact of the Financial Industry Structure Improvement Act, a dividend-centric policy is expected rather than share buybacks. This acts as a factor raising market expectations along with the company's willingness to boost stock prices.

Choi Hyun-deok, CEO, analyzed, "The talk of raising prices now proves that the yield has improved that much." This is interpreted as a reflection of confidence through yield improvement, and ripple effects from TSMC's saturation are also anticipated. If foundry price increases materialize, Samsung Electronics' sales and operating profit are expected to rise together.

Accordingly, it is observed that the strong trend that began in the second half of 2025 is highly likely to persist beyond 2027.

Hynix has unveiled a new optical communication technology, replacing traditional copper wires, in the international academic journal Nature. Choi Hyun-deok, CEO, explained, "Hynix this time unveiled a new optical communication technology in the international academic journal Nature, which transmits data with light instead of existing copper wires." This move aligns with NVIDIA's CPO (Co-Packaged Optics) transition, increasing interest in related beneficiary stocks such as RF Materials, Seojin System, and RFHIC.

The expected return rate, including dividends, is over 13%, which was emphasized as a more favorable investment alternative than other options like real estate.

As profit generation through AI becomes certain, companies are expected to continue investing despite interest rate hikes.

Choi Hyun-deok, CEO, emphasized, "As of today, an economic operation unprecedented in any country will be implemented. Such measures will isolate [Iran] in an unprecedented level of economic warfare. This will be more fearsome than missiles, because as time passes, it will become harder to maintain the regime." This is intended to cut off the funding sources of the Iranian Revolutionary Guard Corps, and combined with attempts to divert attention with talks with North Korea, it portends changes in the geopolitical landscape. Such powerful economic sanctions are analyzed to put significant pressure on the Iranian regime.

Despite news of Moderna's successful clinical trials, a warning was issued regarding surging related biotech stocks. Choi Hyun-deok, CEO, argued, "ST Pharm, which surged because of Moderna, stopped rising. I think all of this has become a resistance level. It can't go higher than this." While Moderna's clinical success is certainly good news, the surge in indirect beneficiary stocks like ST Pharm and Pharmicell is analyzed to be excessive. Accordingly, the necessity of managing risk by selling indirect beneficiary stocks was raised.

Choi Hyun-deok, CEO, stated, "Alteogen's technology is being deployed in Moderna and Merck's cancer vaccine clinical trials. Alteogen's formulation change technology, SC, is being co-administered in the clinical trials for Intismelan, a neoantigen immunotherapy jointly developed by Moderna and Merck." This means that Alteogen's technology is being used to convert MSD's Keytruda IV formulation to an SC formulation, thereby forming a direct revenue structure.

Choi Hyun-deok, CEO, mentioned, "Many investment banks are now increasing their coverage of Alteogen at Kiwoom Securities. Last year, there were only about three," indicating a significant increase in the number of covered brokerages compared to last year. This expanded positive evaluation suggests growing market confidence in Alteogen's technology and business viability.

Choi Hyun-deok, CEO, advised, "In reality, there aren't many people who check all these things one by one, including how IB companies raise and lower interest rates related to credit risk." He emphasized the importance of a broad analysis of the company's fundamentals and surrounding environment, rather than just short-term technology-driven leadership.

This, coupled with the unveiling of Tesla Optimus, is expected to make it a 'super week' for the robot sector.