Hanwha Securities noted on the 3rd that as the market for multilayer ceramic capacitors (MLCC) recovers for Samsung Electro-Mechanics, a valuation reassessment is feasible. It maintained its 'buy' investment opinion and raised the target price from the previous 174,000 won to 240,000 won. The previous day's closing price for Samsung Electro-Mechanics was 169,900 won.
Kim Min-kyung, a researcher at Hanwha Securities, said, 'As the supply and demand for MLCCs tightens, focusing on industrial and automotive applications, the time has come for a valuation reassessment for Samsung Electro-Mechanics,' adding, 'In the case of artificial intelligence (AI) servers, the power consumption is more than ten times that of general servers, necessitating a greater installation of high-capacity, high-voltage MLCCs to stabilize current supply.'
The researcher foresaw that the market situation would ultimately develop into a supplier-driven context. The operational rates of major MLCC manufacturers capable of responding to the high-value demand for MLCCs, including Samsung Electro-Mechanics, have entered the 90% range for the second half of the year, and considering the launch of new AI server products and the increased penetration rate of 800G networks, the supply and demand for MLCCs next year is expected to become even tighter.
The package division is also expected to continue its growth trend. The researcher noted, 'Next year, the package division is anticipated to improve in operational rates and profitability as it secures multiple AI accelerator clients,' and explained, 'We are also preparing to supply camera modules targeted at humanoid robots, which can serve as a momentum.'