Samsung holding 50 billion dollars will aggressively launch acquisitions to boost growth

Samsung worries that the core consumer electronics business is nearing saturation and is seeking to grow beyond that. Tencent Tech Ming Xuan November 7 compiled Samsung Electronics, which holds 50 billion of billions of dollars in cash, will seek more mergers and acquisitions, as Asia's biggest technology company is looking to grow beyond its core consumer electronics business, fearing it is nearing saturation. Samsung Electronics will be more aggressive in mergers and acquisitions after spending 1 billion of billions of dollars on investment in 14 companies since 2010, Li Xiangxun, chief financial officer, said at an analyst meeting in Seoul in Wednesday. Samsung Electronics is also considering adjusting its dividend payout to 1% of its average share price, which means the company's dividend to shareholders will grow by one fold. Samsung Electronics, the world's largest maker of smartphones, televisions and memory chips, began to slide as the market worried that low-cost Chinese manufacturers would reduce their prices, which held its first analyst conference since 2005 in Wednesday. Samsung's share price is set to fall for the first time in five years, thanks to a growing reliance on smartphone business. While Samsung Electronics currently accounts for nearly one-fourth per cent of the global handset market, analysts remain concerned that the company's growth rate may slow. "We will expand our mergers and acquisitions strategy in a number of areas and look for opportunities in a broader context," Li Xiangxun said. He said the company wants to "strengthen the competitive edge of the current business and capture new opportunities for future growth." "Samsung Electronics is looking for better integration of hardware and software after investing in companies such as Sharp, novaled and Medison." The shares fell last month when Samsung said it held a total of 52.68 trillion won (about $50 billion) as of September 30. Excluding debt, Samsung Electronics has a net cash of 40.93 trillion won, up from 33.16 trillion won as of June 30. Samsung Electronics shares fell 2.3% per cent in the Seoul stock Exchange in Wednesday, at 1.451 million won. This year, the company's share price has fallen by 4.7% per cent. In June this year, JPMorgan Chase and Morgan Stanley slashed Samsung's electronic revenue and net profit forecasts, saying the flagship smartphone Galaxy S4 was not as expected, losing $26 billion trillion in market capitalisation. The current dividend for Samsung Electronics is 0.55%, according to Bloomberg statistics. Li Xiangxun said that by the end of this year, Samsung Electronics in research and development in the field of investment will reach 14 billion U.S. dollars, far more than 2010 years of 8 billion U.S. dollars. About 400 analysts and technical experts attended the Wednesday meeting of Samsung Electronics. The company, which includes heads of display, mobile, chip and consumer electronics departments, attended the meeting. "Samsung Electronics has grown into a global investment," said Marcello Ann Marcello, an analyst at Management Seoul, a capital expenditure investment company Quad.Technology giants, the company needs to be more open to the outside world. In the present case, it is at least a sign that Samsung Electronics is starting to consider shareholder returns. "Samsung Electronics will be spending 24 trillion of its capital expenditure this year on record. As of September 30, Samsung Electronics has used 63% of its quota. Samsung's capital spending this year will exceed Sony's current market capitalisation. Samsung Electronics Co-CEO Bang said the company's goal is to achieve 400 billion dollars in revenue by 2020. Samsung Electronics is expected to reach 31.4 trillion trillion won this year, with revenues likely to rise to 232.1 trillion won, according to Bloomberg statistics. Samsung's electronic mobile business accounts for about Two-thirds of the company's net profit. In the third quarter of this year, the operating profit of the Chinese and Indian markets, driven by the growth in demand for midrange smartphones, hit a record 6.7 trillion won. Shenzong, head of Samsung's Electronics mobile business, said the company would sell more than 100 million Galaxy S and note series handsets this year.