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Photo: Samsung Electro-Mechanics |
[Alpha Biz= Paul Lee] SEOUL – KB Securities reaffirmed its “Top Pick” rating on Samsung Electro-Mechanics (SEMCO), maintaining a target price of ₩200,000 — implying a 34.5% upside from the previous closing price of ₩148,700.
Analyst Lee Chang-min highlighted that SEMCO’s product mix is shifting toward high-growth, high-value-added segments, particularly components for AI-driven servers and networks:
“AI investment, led by major North American tech companies, has surged sharply since last year,” Lee said. “This is driving explosive demand for premium MLCCs (multilayer ceramic capacitors) and package substrates, positioning SEMCO for accelerated earnings growth.”
Q2 Performance & Outlook
Q2 revenue: ₩2.79 trillion (+8% YoY)
Q2 operating profit: ₩213 billion (+2% YoY, margin 7.6%) — in line with market consensus
Lee noted that despite currency headwinds — with the KRW/USD rate falling sharply (Q1 average ₩1,453 → Q2 ₩1,401) — SEMCO delivered solid earnings thanks to strong industrial and automotive component sales.
In Q2, MLCC sales by application were:
IT: 52%
Automotive: 27% (up from mid-10% range in late 2023)
Industrial: 21%
3Q Forecast: Best in Two Years
KB Securities projects SEMCO’s Q3 results to mark the best performance in two years:
Revenue: ₩2.81 trillion (+8% YoY)
Operating profit: ₩239.1 billion (+3% YoY, margin 8.5%)
Lee concluded that SEMCO’s continued expansion in automotive and industrial MLCC segments, combined with AI-driven demand for advanced components, will underpin sustained earnings growth.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
