Brokerage : Kyobo Securities
Analyst : Boyoung Choi (20190031@iprovest.com)
Investment Rating : Buy (Maintained)
Target Price : KRW 3,000,000 (Maintained)
Core Momentum : Structural margin expansion and mid-to-long-term growth visibility driven by expanded mix of AI server and automotive high-value MLCCs alongside large-area, multi-layer FC-BGAs
📊 1. [Valuation & Key Financial Metrics]
- Rating & Target Price: Buy (Maintained) / Target Price KRW 3,000,000 (Maintained) (Closing price KRW 879,000 as of July 30, 2026)
- Key Financial Metrics & Forecast:
- Revenue (KRW): 2024 KRW 10.294 Trillion → 2025 KRW 11.314 Trillion → 2026(E) KRW 14.359 Trillion → 2027(E) KRW 17.656 Trillion → 2028(E) KRW 20.803 Trillion
- Operating Profit (KRW): 2024 KRW 735.0 Billion → 2025 KRW 913.0 Billion → 2026(E) KRW 1.994 Trillion → 2027(E) KRW 2.837 Trillion → 2028(E) KRW 3.401 Trillion
- Operating Profit Margin (OPM): 2024 7.1% → 2025 8.1% → 2026(E) 13.9% → 2027(E) 16.1% → 2028(E) 16.3%
- Net Profit (KRW): 2024 KRW 703.0 Billion → 2025 KRW 731.0 Billion → 2026(E) KRW 1.638 Trillion → 2027(E) KRW 2.252 Trillion → 2028(E) KRW 2.660 Trillion
- EPS (KRW): 2024 KRW 9,022 → 2025 KRW 9,362 → 2026(E) KRW 21,093 → 2027(E) KRW 29,030 → 2028(E) KRW 34,304
- Valuation Multiples (PER / PBR / ROE):
- 2024: PER 13.7x, PBR 1.1x, ROE 8.2%
- 2025: PER 27.2x, PBR 2.1x, ROE 7.7%
- 2026(E): PER 41.7x, PBR 6.2x, ROE 15.4%
- 2027(E): PER 30.3x, PBR 5.3x, ROE 18.2%
- 2028(E): PER 25.6x, PBR 4.4x, ROE 18.2%
- 2Q 2026 Consolidated Results (2Q26):
- Revenue: KRW 3.4572 Trillion (+24% YoY, +8% QoQ)
- Operating Profit: KRW 440.4 Billion (+107% YoY, +57% QoQ, beating consensus of KRW 406.1 Billion by +8.5%)
🚀 2. [Market Opportunities & Business Outlook]
- Component Division (MLCC):
- 2Q26 Performance: Revenue reached KRW 1.6494 Trillion (+29% YoY), driven by strong demand in AI servers, data centers, and ADAS/xEV applications.
- Supply Dynamics & Strategy: With limited suppliers capable of addressing AI server MLCC demand, LTAs have been established with approximately 10 hyperscalers and semiconductor firms, with additional agreements and strategic pricing adjustments underway.
- Package Solutions Division (FC-BGA):
- 2Q26 Performance: Revenue reached KRW 771.6 Billion (+37% YoY), supported by volume ramp-ups for global Big Tech AI accelerators and server CPUs, alongside new data center network substrate supplies.
- Outlook: Shortages caused by the trend toward large-area, multi-layer AI substrates will drive earnings growth through new Big Tech volume production and favorable price adjustments.
- Optics & Communication Division:
- Declined 4% QoQ due to seasonality, but grew 10% YoY fueled by expanded shipments of high-spec smartphone and automotive camera modules.
- Mid-to-Long Term Drivers:
- Commercial expansion of silicon capacitors and advancement of the glass substrate business targeted for operation in 2028.
- 3Q26 Outlook:
- Projected Revenue of KRW 3.8226 Trillion and Operating Profit of KRW 592.5 Billion, expected to set a record quarterly high.
📝 Editor’s Comment (Perspective)
The analyst views Samsung Electro-Mechanics not merely as a cyclical component supplier vulnerable to smartphone demand swings, but as an essential hardware enterprise undergoing structural portfolio re-alignment toward high-value AI server and automotive infrastructure. This perspective highlights the qualitative business model transition, where higher performance and power demands in AI semiconductors drive content-per-box increases and ASP expansion for high-capacitance MLCCs and large-area, multi-layer FC-BGAs.
To evaluate the progression of this investment thesis, key monitoring points include whether 3Q26 achieves record quarterly operating profit, the execution of additional LTAs and strategic pricing for AI server MLCCs, the volume ramp of FC-BGAs for new Big Tech customers, and development progress in next-generation silicon capacitors and glass substrates. These metrics can be tracked through future quarterly earnings announcements, official IR materials, and regular regulatory filings.
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Source: This content has been structured and newly written based on officially disclosed financial facts and data from brokerage reports.
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