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Samsung predicts another record-high quarterly profit

13 October 2017

Samsung Electronics Co Ltd said on Friday its third-quarter operating profit likely almost tripled from a year earlier to a new record, beating analyst estimates as strong memory chip prices fattened margins.

"The company has been riding a global semiconductor boom", he said, adding the semiconductor business alone is believed to have contributed 10 out of the 14.5 trillion won operating profit.

The company is set to release its final earnings report later this month.

Both shipments and prices of the company's main products - DRAM and NAND memory chips - have been increasing over the past several months, he said.

It is also a 3 percent rise from this year's second quarter - its previous highest - of 14.07 trillion won in profits.

Brisk sales of the latest Galaxy Note 8 smartphone, launched in mid-September, lifted mobile profit as Samsung recovered from last year's costly withdrawal of the fire-prone Note 7 device, analysts said.

Samsung Electronics' Galaxy Note 8 are seen on display at its store in Seoul, South Korea, October 11, 2017.

Shares in SK Hynix Inc, the world's second-largest memory chip maker after Samsung Electronics, also jumped as much as 4.3 percent, their biggest intraday percentage gain since August 14. Analysts have tipped its chip division to propel the firm to record overall profit.

Samsung Electronics Vice Chairman Lee Jae-yong is now behind bars after a local court found him guilty of bribery and embezzlement in a massive corruption scandal that led to the ousting of former President Park Geun-hye.

Mirae Asset Daewoo Securities added the consumer electronics division will experience growth on the back of strong seasonal demand.

His ailing father Lee Kun-hee has been hospitalized since 2014, and is now unable to participate in the company's management.

"Currently, Samsung is only harvesting from rich soil", an anonymous Samsung executive said.

Samsung predicts another record-high quarterly profit