Brokerage : Hana Securities
Analyst : Kim Min-kyung (minkyung.kim@hanafn.com)
Investment Rating : BUY (Maintained)
Target Price : KRW 1,700,000 (Raised)
Core Momentum : Long-term earnings expansion to over KRW 3 Trillion operating profit in 2027 driven by a KRW 1.6 Trillion silicon capacitor supply contract and industry-wide capacity cannibalization from 800VDC infrastructure adoption
📊 1. [Valuation & Key Financial Metrics]
- Rating & Target Price: BUY (Maintained) / Target Price KRW 1,700,000 (Raised) (Closing price KRW 1,061,000 as of May 20, 2026)
- Valuation Methodology: Applied Ibiden’s 2027(E) P/E multiple to 2027(E) EPS of KRW 33,014
- Operating Profit Forecast Upgrades:
- 2027 consolidated operating profit forecast raised by +28% to KRW 3.0663 Trillion (+86% YoY, 19% OPM)
- Upwardly adjusted 2027 operating profit forecasts for Component Solution by +35% and Package Solution by +12%
- Key Financial Metrics & Forecast:
- Revenue (KRW): 2024 KRW 10.2941 Trillion → 2025 KRW 11.3145 Trillion → 2026(E) KRW 13.4274 Trillion → 2027(E) KRW 16.0211 Trillion
- Operating Profit (KRW): 2024 KRW 735.0 Billion → 2025 KRW 913.3 Billion → 2026(E) KRW 1.6497 Trillion → 2027(E) KRW 3.0663 Trillion
- Net Profit (Controlling) (KRW): 2024 KRW 679.1 Billion → 2025 KRW 706.1 Billion → 2026(E) KRW 1.3776 Trillion → 2027(E) KRW 2.6559 Trillion
- EPS (KRW): 2024 KRW 8,752 → 2025 KRW 9,099 → 2026(E) KRW 17,752 → 2027(E) KRW 31,776 (Valuation target EPS cited at KRW 33,014)
- Valuation Multiples (PER / PBR / ROE):
- 2024: PER 14.15x, PBR 1.08x, ROE 8.16%
- 2025: PER 28.03x, PBR 2.04x, ROE 7.70%
- 2026(E): PER 59.77x, PBR 7.56x, ROE 13.58%
- 2027(E): PER 33.39x, PBR 6.25x, ROE 20.75%
🚀 2. [Market Opportunities & Business Outlook]
- Mega Silicon Capacitor Supply Contract (KRW 1.6 Trillion):
- Disclosed a supply agreement valued at approximately KRW 1.6 Trillion with a major global tech enterprise, delivering across 2027–2028.
- Fabricated on silicon wafers down to micrometer scales to enable ultra-thin package profiles, meeting surging demand for Vertical Power Delivery (VPD) to shorten signal transmission distances.
- Complements rather than cannibalizes high-capacitance MLCCs, driving co-growth in high-value AI workloads.
- Component Solution (800VDC Power Infrastructure Tailwinds):
- AI server rack power density growth is driving exponential increases in MLCC content per rack.
- Adoption of 800VDC datacenter power architectures by 2027 will drive simultaneous volume expansion across high-voltage and low-voltage high-capacitance products, heavily cannibalizing global MLCC fab capacity.
- Mid-tier Asian suppliers pivoting toward AI server supply will further accelerate capacity constraints across the entire industry.
- Package Solution (FCBGA Pricing Power & Embedded Architectures):
- Rising datacenter demand is accelerating adoption of capacitor-embedded FCBGA substrates to minimize interconnect latency.
- The upward FCBGA pricing trend initiated in 1Q26 is expected to continue throughout the year, complemented by yield and manufacturing efficiency improvements.
📝 Editor’s Comment (Perspective)
The analyst views Samsung Electro-Mechanics not merely as a conventional passive component supplier, but as a premier hardware platform commanding proprietary technologies across MLCCs, silicon capacitors, and advanced substrates to resolve AI datacenter power and signal bottlenecks. This perspective emphasizes the qualitative leap verified by the KRW 1.6 Trillion silicon capacitor LTA, extensive industry-wide capacity cannibalization spurred by 800VDC datacenter architectures, and structural margin expansion toward surpassing KRW 3 Trillion in operating profit by 2027.
To evaluate whether this investment thesis unfolds as anticipated, key verification checkpoints include the sequential commercial production ramp-up of the KRW 1.6 Trillion silicon capacitor contract across 2027–2028, the realization of 19% corporate operating margin driven by 800VDC-driven MLCC product mix upgrades, and the volume expansion of capacitor-embedded FCBGA substrates alongside continuous pricing gains. Progress on these fronts can be tracked via upcoming quarterly earnings announcements, official investor relations disclosures, and periodic regulatory filings.
📢 Disclaimer & Source
Source: This content has been structured and newly written based on officially disclosed financial facts and data from brokerage reports.
Investment Risk Notice: This content is provided for informational and linguistic reference purposes only. Under no circumstances does it constitute financial advice or a recommendation to buy or sell any specific securities. All investment decisions and financial responsibilities rest entirely with the investor.
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