Samsung Electronics closes on first quarter of 2022 with a record profit of +58,57% and with the best operating profits (+50,5% on the previous year) since the beginning of 2018 thanks to the solid demand for microprocessors, smartphones and mobile devices. The Korean group is aimed at 14.100 trillion won (11,1 billion dollars), over the 13.200 trillion expected by analysts.
Reverse path instead for the Chinese competitor Huawei which has seen revenues and profits collapse due to US sanctions.
Samsung: the demand for chips and servers soars
The South Korean giant, in a notice from the stock exchange, also warned against the persistence of the shortage of components in the second half of the year, however united to a relatively solid demand for chips and servers.
The DX (Device eXperience) division posted its highest revenues since 2013, while the DS (Device Solutions) division posted an all-time high for quarterly revenue.
“While uncertainties surrounding the macroeconomic environment and geopolitical issues are likely to remain, the company will give priority to the increase of the part of the advanced processes for the component production“, Reads the note.
Sales update all-time highs
Le sales they rose by 18,9%, to 77.700 billion won, updating the all-time highs and for the third quarter in a row above 70.000 billion won.
The profits of the business of microprocessors rose to 8.450 trillion, more than double the 3.360 trillion of 12 months ago, fueled by record sales in the sector of server. The operating profit of the business of mobile e network of Samsung is 3.800 billion, down from 4.400 billion in the first quarter of 2021.
Samsung ramped up production of its lower- to mid-range Galaxy A series in the first part of 2022 to compete more aggressively in the segment, while also launching the flagship Galaxy S22 series — moves that helped boost smartphone market share. smartphones up 24% during the period from 22% 12 months ago, a statement said.
Huawei cuts profit by 67%. Sanctions and US investments weigh heavily
The profit of Huawei Technologies Co. was down about 67% in first quarter as the Chinese telecommunications equipment giant continued to feel the pinch from crippling trade sanctions and US investment. The revenue they fell 14% to 131 billion yuan ($19,8 billion) in the three months to March, a company statement said. The net profit margin narrowed to 4,3%, which translates to 5,6 billion yuan. That compares to an 11,1% margin and 16,9% net income a year earlier.
Although Huawei has not given a reason for the profits slump, its profit was hit by falling sales and rising R&D expenses, according to Bloomberg reports. The company has earmarked 22,4% of its 2021 sales to develop chips, telecommunications equipment and smartphones that could be exempt from US-imposed sanctions.
“We have once again increased ours investment in research and development to harness the momentum of our innovation and create new value for customers,” said rotating president Ken Hu. “In 2022, we still face a challenging and complicated business environment.”
The profit of the company in 2021 rose 76% despite declining sales. It earned 61 billion yuan in additional net income last year after selling the Honor smartphone sub-brand and an x86 server unit to government-backed consortia.
Positive Asian stocks
Despite the record numbers, Samsung shares fell during the session on the Seoul Stock Exchange and then listed in the Italian late morning close to parity, at 1,278 dollars (+0,08%).
Despite the war tensions, the main stock exchanges of Asia and the Pacific closed higher starting from Tokyo (+1,75%), with the yen falling beyond 130 units per dollar.
Taiwan (+0,71%), Seoul (+1,08%), Sydney (+1,32%), Hong Kong (+0,54%), Shanghai (+0,21%) and Mumbai ( +0,77%).
