Samsung Electronics' (005930.KS) share of KOSPI market capitalization has reached its highest level in over six years. The result comes as the company delivered notable profit growth and defended its stock price even as global geopolitical risks roiled markets. Samsung Electronics posted more than 57 trillion won in operating profit in the first quarter of this year.
According to Korea Exchange (KRX) on the 7th, Samsung Electronics closed at 196,500 won, up 1.76% on the day. During the session, shares changed hands at as high as 202,500 won, briefly reclaiming the 200,000 won level. Based on the closing price, Samsung's market capitalization stood at 1,163.2 trillion won, accounting for 25.70% of the total KOSPI market capitalization of 4,526.5 trillion won. This marks the highest level in approximately six years since March 24, 2020 (25.86%), during the early stages of the COVID-19 pandemic.
While volatility in the domestic stock market intensified due to the war between the U.S.-Israel and Iran, Samsung Electronics' stock price declined relatively modestly. Samsung shares fell 9.9% over the past month from 218,000 won on February 26, just before the outbreak of the war. Over the same period, the KOSPI index dropped 12.9%. The company's market cap share expanded as its decline was relatively smaller compared to the broader index.
Solid earnings underpinned the relatively stable stock price. Samsung Electronics disclosed that its preliminary first-quarter results showed revenue of 133 trillion won and operating profit of 57.2 trillion won. In a single quarter, the company posted record-high earnings that surpassed the entirety of last year's operating profit of 43.6 trillion won. The market consensus — the average estimate among securities firms — was revenue of 117.1 trillion won and operating profit of 38.1 trillion won, both of which Samsung significantly exceeded.
"Earnings growth is expected to continue as semiconductor demand rises driven by expanded artificial intelligence (AI) investment worldwide," a securities industry official said. "Samsung Electronics' preliminary first-quarter results are a super surprise, far exceeding industry forecasts."
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