Brokerage : IBK Securities
Analyst : Kim Woon-ho
Investment Rating : BUY (Maintained)
Target Price : KRW 1,050,000 (Raised)
Core Momentum : Structural earnings expansion and favorable pricing conditions projected on the back of rising Non-IT MLCC demand, server/AI ASIC FC-BGA growth, and projected 3-year CapEx acceleration
📊 1. [Valuation & Key Financial Metrics]
- Investment Rating & Target Price: BUY maintained; Target Price raised from KRW 600,000 to KRW 1,050,000 (+75.0%).
- EPS Forecast Revisions:
- 2026F EPS: KRW 16,426 (raised from KRW 13,130; +80.5% YoY)
- 2027F EPS: KRW 20,986 (raised from KRW 19,266; +27.8% YoY)
- 1Q26 Earnings Review:
- Revenue: KRW 3.2092 Trillion (+10.6% QoQ)
- Operating Profit: KRW 280.6 Billion (+16.9% QoQ, slightly exceeding previous estimates)
- Highlights: Broad-based sequential revenue growth across all divisions supported by seasonality and price increases in select product lines.
- Annual Financial Projections (2026F – 2028F):
- 2026F: Revenue KRW 13.138 Trillion / Operating Profit KRW 1.607 Trillion (+75%+ YoY) / Controlling Net Profit KRW 1.275 Trillion
- 2027F: Revenue KRW 14.766 Trillion / Operating Profit KRW 2.188 Trillion / Controlling Net Profit KRW 1.629 Trillion
- 2028F: Revenue KRW 16.750 Trillion / Operating Profit KRW 2.554 Trillion / Controlling Net Profit KRW 1.855 Trillion
- Key Financial Multiples (2026F):
- Operating Margin (OPM): 12.2%
- Net Margin: 11.1%
- ROE: 12.6%
- P/E: 50.7x
- P/B: 6.1x
- EV/EBITDA: 23.9x
- Dividend Yield: 0.5%
🚀 2. [Market Opportunities & Business Outlook]
- Supply Tightness Across Component & Package Markets:
- The analyst notes that industry demand is surging amid tight supply across both component and package substrate divisions.
- Solid sequential earnings growth is expected to persist from 2Q26 through the end of the year, overcoming typical 4Q seasonality.
- CapEx Growth Forecast & Customer Visibility:
- The analyst projects that the company will deploy capital expenditures equivalent to the past 10 years over the next 3 years starting in 2026 to address surging market demand.
- According to the report’s assessment, this aggressive investment outlook implies secured customer visibility and incorporates surging AI semiconductor volumes as well as demand from new FC-BGA client acquisitions.
- Product Mix Upgrade & Pricing Power:
- MLCC: The revenue share of Non-IT MLCC is steadily increasing, improving profitability and creating favorable market conditions for potential price hikes.
- Package Solution: Revenue and profitability gains are expected to continue, driven by an expanding mix of server and AI ASIC substrates.
📝 Editor’s Comment (Perspective)
The analyst views Samsung Electro-Mechanics not merely as a passive component supplier bound by consumer IT replacement cycles, but as a critical hardware beneficiary positioned to capture AI semiconductor and high-end substrate growth through customer-backed capacity expansion. The analytical perspective places greater structural significance on the projected 3-year CapEx acceleration and product mix upgrades in Non-IT MLCC and AI ASIC FC-BGA substrates rather than typical quarterly seasonal fluctuations.
To assess whether this investment thesis continues to materialize, key tracking points include the actual scale and timing of the projected multi-year CapEx rollout, actual volume ramp-ups to newly acquired AI semiconductor and FC-BGA clients, and the extent to which expanding Non-IT MLCC exposure translates into realized ASP gains and company-wide operating margin expansion. These variables can be verified through upcoming quarterly earnings releases, official company IR presentations, periodic regulatory filings (quarterly, semi-annual, and annual reports), and DART disclosures.
📢 Disclaimer & Source
Source: This content has been structured and newly written based on officially disclosed financial facts and data from brokerage reports.
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