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7 October 2016 By Robyn Mak Follow @mak_robyn

The tech giant shrugged off the impact of its Note 7 fiasco in its quarterly results, thanks to growth in chips. Yet investors undervalue this and other exciting units based on a near 50 pct discount to the sum of its parts. It boosts Elliott’s call for the Lee family to act.

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Samsung Electronics said on Oct. 7 its estimated revenue for the quarter ending September was 49 trillion won ($44 billion), a decrease of 5.2 percent compared to the same period last year.

Operating profit likely rose 5.6 percent year on year to 7.8 trillion won, beating expectations. Analysts had lowered expectations for Samsung's third-quarter earnings after it announced a global recall of at least 2.5 million Note 7 mobile handsets, due to faulty batteries causing some phones to catch fire.

The company did not give further details about its business units, which range from smartphones to semiconductors to display panels, and will disclose full results in late October. Samsung also made no comment on how much the Galaxy Note 7 recall might cost.

On Oct. 5, U.S. hedge fund Elliott Management called for a radical overhaul of Samsung Electronics. The tech company said it will "carefully review" the proposals which include splitting the firm into a listed holding company and an operating company, as well as a 30 trillion won special dividend.

Shares of Samsung were flat at 1.69 million won during early morning Seoul time on Oct. 7.

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