Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>Samsung Electronics announced that it will revamp its executive compensation system to include treasury shares as incentives. Samsung has benchmarked TSMC in terms of paying treasury shares to its employees.</li>
<li>Samsung Electronics' decision to revamp its executive compensation system to include treasury shares as incentives aligns the interests of the shareholders along with the company's management.</li>
<li>Now that Samsung Electronics has incorporated stock based incentive system, it is likely that other Korean companies that could follow suit. </li>
</ul>


Samsung Electronics announced that it will revamp its executive compensation system to include treasury shares as incentives. Samsung has benchmarked TSMC in terms of paying treasury shares to its employees.
Samsung Electronics' decision to revamp its executive compensation system to include treasury shares as incentives aligns the interests of the shareholders along with the company's management.
Now that Samsung Electronics has incorporated stock based incentive system, it is likely that other Korean companies that could follow suit. 


Samsung Electronics: Revamping Executive Compensation to Include Stocks - Benchmarking TSMC

Equity Derivatives and Volatility Specialist, Clifton Derivatives

John Ley

Equity Derivatives and Volatility Specialist

Clifton Derivatives

Independent derivative and volatility research firm focusing on events/catalysts, earnings, relative value and cross asset volatility strategies.

Event-Driven

<ul>
<li>Samsung Electronics stock has been an underperformer outright and also relative to Kospi200 as an overhang of catalysts has weighed on performance.</li>
<li>Implied vols are at the 88th percentile over the last 3 years and are at the top of their range relative to Kospi200.</li>
<li>We recommend 4 different ways to position in front of these catalysts and the large stock buy-back that was announced in November. </li>
</ul>


Samsung Electronics stock has been an underperformer outright and also relative to Kospi200 as an overhang of catalysts has weighed on performance.
Implied vols are at the 88th percentile over the last 3 years and are at the top of their range relative to Kospi200.
We recommend 4 different ways to position in front of these catalysts and the large stock buy-back that was announced in November. 


EQD | Samsung Electronics – How to Position Amid a Plethora of Catalysts

Equity Bottom-Up

<ul>
<li>In the past several years, one of the biggest risk factors on Samsung Electronics and other Samsung Group affiliates has been the huge inheritance tax payments by the Lee family.</li>
<li>Despite the weak share price performances of the four major Samsung Group affiliates, their consolidated equity increased by 31.4% on average from end of 2019 to end of 3Q 2024.</li>
<li>Once Lee family pays off the fifth installment in 2025, the market could look upon this situation more favorably due to reduced overhang associated with additional future inheritance tax payments.</li>
</ul>


In the past several years, one of the biggest risk factors on Samsung Electronics and other Samsung Group affiliates has been the huge inheritance tax payments by the Lee family.
Despite the weak share price performances of the four major Samsung Group affiliates, their consolidated equity increased by 31.4% on average from end of 2019 to end of 3Q 2024.
Once Lee family pays off the fifth installment in 2025, the market could look upon this situation more favorably due to reduced overhang associated with additional future inheritance tax payments.


Samsung Electronics: Trading Strategy Post Another Inheritance Tax Sale

Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

<ul>
<li>Some speculate Samsung might delay the value-up announcement until after the February 3 ruling, using it strategically to influence the verdict and align with the appeal's outcome.</li>
<li>Market chatter even surrounds Samsung's HBM test delays with NVIDIA, with some linking it to Lee Jae-yong’s February 3 appeal ruling—though it seems more like speculative conspiracy.</li>
<li>If Lee Jae-yong wins his appeal on February 3, it could trigger key events like value-up disclosure and HBM pass, significantly impacting Samsung's short-term price action and positions.</li>
</ul>


Some speculate Samsung might delay the value-up announcement until after the February 3 ruling, using it strategically to influence the verdict and align with the appeal's outcome.
Market chatter even surrounds Samsung's HBM test delays with NVIDIA, with some linking it to Lee Jae-yong’s February 3 appeal ruling—though it seems more like speculative conspiracy.
If Lee Jae-yong wins his appeal on February 3, it could trigger key events like value-up disclosure and HBM pass, significantly impacting Samsung's short-term price action and positions.


Samsung Electronics' Key Inflection Point: Lee Jae-Yong's Final Appeal Ruling on February 3

Tracking developments across tech supply chains, Tech Supply Chain Tracker

Tech Supply Chain Tracker

Tracking developments across tech supply chains

<ul><li>Intel's Panther Lake chip set to drive growth in AI PC market and spark resurgence in semiconductor foundry industry by second half of 2025.</li><li>Rapidus to provide 2nm chip samples to Broadcom, highlighting advancements in semiconductor technology and potential for increased performance.</li><li>Taiwanese companies eye opportunities in expanding renewable energy market in the Philippines, showcasing interest in sustainable business practices. CES 2025 sees Nvidia unveiling robot collaborations while concerns emerge over South Korea's absence. Honda and Sony face uncertainty as Afeela 1 debuts, while Tata Elxsi and Qualcomm team up to develop virtual models of Snapdragon Digital Chassis solutions. UK-Taiwan tech partnerships strengthen as British Representative to Taiwan concludes term, reflecting deepening alliance between the two countries.</li></ul>

Intel's Panther Lake chip set to drive growth in AI PC market and spark resurgence in semiconductor foundry industry by second half of 2025.Rapidus to provide 2nm chip samples to Broadcom, highlighting advancements in semiconductor technology and potential for increased performance.Taiwanese companies eye opportunities in expanding renewable energy market in the Philippines, showcasing interest in sustainable business practices. CES 2025 sees Nvidia unveiling robot collaborations while concerns emerge over South Korea's absence. Honda and Sony face uncertainty as Afeela 1 debuts, while Tata Elxsi and Qualcomm team up to develop virtual models of Snapdragon Digital Chassis solutions. UK-Taiwan tech partnerships strengthen as British Representative to Taiwan concludes term, reflecting deepening alliance between the two countries.

Tech Supply Chain Tracker (11-Jan-2025): Intel's Panther Lake boosts AI PC growth, foundry recovery by 2H25.

South Korea

Samsung Electronics Co., Ltd. manufactures a wide range of consumer and industrial electronic equipment and products such as semiconductors, personal computers, peripherals, monitors, televisions, and home appliances including air conditioners and microwave ovens. The Company also produces Internet access network systems and telecommunications equipment including mobile phones.

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Samsung Electronics (SMSN LI)

Samsung Electronics: Revamping Executive Compensation to Include Stocks - Benchmarking TSMC

Samsung Electronics announced it will revamp its executive compensation system to include treasury shares as incentives, better aligning the...

Douglas Kim

EQD | Samsung Electronics – How to Position Amid a Plethora of Catalysts

Samsung Electronics stock has underperformed due to catalysts, with high implied vols. Recommendations given for positioning ahead of catalysts...

John Ley

Samsung Electronics: Trading Strategy Post Another Inheritance Tax Sale

It is start of another year and that means another fat inheritance tax payment for Samsung Electronics (005930 KS) and other Samsung Group affiliates.

Douglas Kim

Samsung Electronics' Key Inflection Point: Lee Jae-Yong's Final Appeal Ruling on February 3

If Lee Jae-yong wins his appeal on February 3, it could trigger events like value-up disclosure and HBM pass, impacting Samsung's short-term price...

Sanghyun Park

Tech Supply Chain Tracker (11-Jan-2025): Intel's Panther Lake boosts AI PC growth, foundry recovery by 2H25.

Intel's Panther Lake drives AI PC growth, Rapidus supplies 2nm chips to Broadcom, Taiwanese firms eye Philippines' renewable energy market,...

Tech Supply Chain Tracker

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Samsung Electronics: Revamping Executive Compensation to Include Stocks - Benchmarking TSMC

Samsung Electronics announced it will revamp its executive compensation system to include treasury shares as incentives, better aligning the...

Douglas Kim

EQD | Samsung Electronics – How to Position Amid a Plethora of Catalysts

​Samsung Electronics stock has underperformed due to catalysts, with high implied vols. Recommendations given for positioning ahead of catalysts...

John Ley

Samsung Electronics: Trading Strategy Post Another Inheritance Tax Sale

It is start of another year and that means another fat inheritance tax payment for Samsung Electronics (005930 KS) and other Samsung Group affiliates.

Douglas Kim

Samsung Electronics' Key Inflection Point: Lee Jae-Yong's Final Appeal Ruling on February 3

If Lee Jae-yong wins his appeal on February 3, it could trigger events like value-up disclosure and HBM pass, impacting Samsung's short-term price...

Sanghyun Park

Tech Supply Chain Tracker (11-Jan-2025): Intel's Panther Lake boosts AI PC growth, foundry recovery by 2H25.

Intel's Panther Lake drives AI PC growth, Rapidus supplies 2nm chips to Broadcom, Taiwanese firms eye Philippines' renewable energy market,...

Tech Supply Chain Tracker

Samsung Electronics stock has underperformed due to catalysts, with high implied vols. Recommendations given for positioning ahead of catalysts...