Logistics and IT solutions provider Samsung SDS Co. is an odd one out of the mighty Samsung family, neglected by its parent group and shunned by investors as its business identity and prospects remain murky.

The stock debuted on Nov. 14, 2014 with much fanfare as the darling child of Samsung Group heir Jay Y. Lee who owned a 11.25 percent in the company, zooming to 428,000 won ($367.04) soon after it was initially offered at 190,000 won. As of Monday, the stock hovers way below the IPO price, closing Tuesday at 132,500 won.

Despite bearing the name of technology-strong Samsung, its price-to-earnings ratio (P/E) stands at around 20 in humble comparison to bigger IT name Naver’s 33.

The stock has been in a downward spiral ever since Lee shed about 2 percent of his stake in the company in January to raise funds to take part in recapitalization of troubled Samsung Engineering. But the funds instead were spent to increase his stake in Samsung C&T after it merged with Cheil Industries to act as the de facto holding company for the conglomerate. It was clear that the company has lost favor with the new ruler of the Samsung dynasty. Then its fate became even foggier amid talks that it would be split up into two businesses in logistics and IT solution with the more lucrative logistics that takes up 33 percent of the company’s revenue going under Samsung C&T.

To prevent a further crash in the stock price, the company in June issued a statement that it was considering a partial spinoff to strengthen logistics competitiveness, promising to release further details later.

Market observers believe the company would announce a reorganization plan within the next couple of months, but they are unsure what the group has in mind for the company.

The company lacks business vision as it has not been investing for the last two years and as result sits on a cash hoard of 2.5 trillion won. It recently sold off a profit-making home network systems business. Yet it hasn’t been making any acquisitions to enhance its technology edge. Upward momentum for the stock is unlikely unless the group and company present a clear business outline for sustainability and future growth.

Shares of Samsung SDS closed at 132,500 won, up 1.15 percent, or 1,500 won, from the previous session Tuesday.

By Hong Jang-won and Chung Woo-sung

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