Samsung Electronics (005930.KS) Announces 2026 shareholder returns of ~W100tn at the mid point, likely higher mix of dividen...

Equity Research 23 August 2026 | 11:10PM SGT

Samsung Electronics (005930.KS) Announces 2026 shareholder returns of ~W100tn at the mid-point, likely higher mix of dividends; significant shareholder returns to help drive higher valuation multiples; Buy (on CL)

005930.KS 12m Price Target: W490,000 Price: W281,500 Upside: 74.1% BUY CL 005935.KS 12m Price Target: W360,000 Price: W207,000 Upside: 73.9% Giuni Lee | Goldman Sachs (Singapore) Pte After market close on August 21, Samsung Electronics (SEC) Taeyong Lee announced its FY2026 shareholder return plan, outlining an | Goldman Sachs (Asia) L.L.C., Seoul Branch estimated remaining return pool of W90tn to W110tn. Notably, SEC Daiki Takayama stated that advance payments received under LTAs and cash outflow | Goldman Sachs Japan Co., Ltd. for employee stock-based performance compensation would be deducted when calculating FCF. SEC also said it plans to execute a cash dividend of approximately W30tn in 3Q26, with specifics to be Key Data _____________________________________ Market cap: W1,890.9tr / $1.4tr determined at the end-October board of directors meeting. For the Enterprise value: W1,688.4tr / $1.2tr 3m ADTV: W8.9tr / $6.0bn remaining 2026 shareholder return pool, SEC mentioned that it is South Korea Korea Technology considering diverse forms including dividends and M&A Rank: 3 buybacks/cancellations, which will be determined at the January Leases incl. in net debt & EV?: Yes

2027 board of directions meeting upon the finalization of FY2026 GS Forecast __________________________________ 12/25 12/26E 12/27E 12/28E results. Revenue (W bn) New 333,605.9 720,048.4 928,291.4 1,056,615.6 Revenue (W bn) Old 333,605.9 720,048.4 928,291.4 1,056,615.6 EBITDA (W bn) 90,527.6 432,331.8 626,224.0 728,338.3 Implications from SEC’s shareholder returns plan EPS (W) New 6,613 46,078 71,848 87,588 EPS (W) Old 6,613 45,623 67,378 79,040 n Based on recent media reports mentioning a potential P/E (X) P/B (X) 1.1 2.6 1.7 1.2 shareholder return of ~W150tn this year, the guidance of Dividend yield (%) 2.3 4.2 6.4 7.8 W100tn at the midpoint was likely lower than consensus CROCI (%)

expectations. At the same time, even assuming the company 6/26 9/26E 12/26E 3/27E

keeps its current target of paying 50% of its FCF, the shareholder EPS (W) 10,833 13,324 14,780 15,740

return pool we expect for 2027E/2028E will likely increase GS Factor Profile ______________________________ Growth significantly to W179tn/W232tn, respectively. Financial Returns

n While an announcement of an immediate shareholder return Multiple similar to its main local peer was lacking, the company also laid out its plan to continue to pay additional shareholder returns. Integrated

SEC has said it plans to pay ~W30tn in dividends in 3Q26, where Percentile 20th 40th 60th 80th 100th

this amount includes both regular dividends and special 005930.KS relative to Asia ex. Japan Coverage dividends. The company also plans to announce additional 005930.KS relative to Korea Technology

shareholder returns in January 2027 using the remaining FCF Source: Company data, Goldman Sachs Research estimates. pool, so there will likely be a sizable shareholder return on a See disclosures for details.

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs Samsung Electronics (005930.KS)

Samsung Electronics (005930.KS) Income Statement (W bn) ___________________________________ 12/25 12/26E 12/27E 12/28E BUY CL Rating since Jul 14, 2017 Total revenue 333,605.9 720,048.4 928,291.4 1,056,615.6 Cost of goods sold (202,235.5) (240,968.5) (297,053.3) (347,165.5) SG&A (50,029.0) (47,823.2) (13,843.9) 4,219.9 Ratios & Valuation __________________________________________ R&D (37,740.4)…