SEOUL -- South Korea's Samsung Electronics (SEC), the world's largest memory chipmaker, on Friday forecast hefty sales and a net profit worth more than six billion dollars this year.

SEC's net profit soared to an all-time high of 7.5 trillion won (6.3 billion dollars) last year from 2.95 trillion won in 2001.

"We target more than seven trillion won in net profit this year," Yun Jong-Yong, Vice Chairman and Chief Executive officer, told an annual general meeting at Samsung Electronics Co. Ltd.

Yun said he expects the semiconductor giant's sales to increase to 41 trillion this year. sales posted a record 40.5 trillion won last year.

The company will invest a total of 6.6 trillion won this year, up 2.0 trillion won from last year, he said.

Yun played down rising concerns over recent weakness in his firm's share prices, citing its downturn was milder than other competing global it (information technology) firms.

"The extent of the fall in Samsung Electronics shares is not that worrisome, given the fact that global it firms' stock prices have fallen to as low as one tenth (the level from their highs)," he said.

He added SEC would focus more on buying back shares rather than paying dividends as part of moves to boost shareholder value.

"We are going to protect shareholders in such ways as buying back shares, rather than increasing the dividend," he told the annual general meeting.

The meeting approved SEC's offer to pay its shareholders a dividend of 5,500 won a share for last year, more than double the dividend a year earlier.

Chu Woo-sik, SEC's investor relations team chief, said earlier that the company cannot cancel 1.5 trillion won worth of shares it bought back due to the current regulations, denying rumors it will cancel some of its own shares.

Dealers expect sec to remain under pressure for a while as memory chip prices are unlikely to rebound in any meaningful way because of weak demands. (AFP)