Daishin Securities Co. said on the 10th that Samsung Electro-Mechanics is set to post its best-ever results next year, driven by multilayer ceramic capacitors (MLCC) for artificial-intelligence (AI) servers, among other factors.
It also maintained a "Buy" investment opinion and raised the target price to 330,000 won, up 13.8% from the previous 290,000 won. The previous trading day's closing price of Samsung Electro-Mechanics was 269,500 won.
Park Kang-ho, an analyst at Daishin Securities Co., said, "Operating profit next year will reach about 1.14 trillion won, surpassing the record high since 2022 (1.18 trillion won)," adding, "Across all businesses, the share of IT will shrink, while sales of higher-margin automotive and industrial products will increase, producing a mix effect."
Park said FC BGA revenue will drive overall growth. Park noted, "Within the substrate solutions segment, FC BGA's share of revenue exceeded 50% in the third quarter this year, emerging as a key product," adding, "In particular, the rising AI exposure in data centers and servers is an important basis for higher valuation."
He also projected that its technological edge will lead growth in the glass substrate market. As semiconductor package substrate makers expand FC BGA operations into servers and data centers, the glass substrate business is expected to generate synergy.
Park added, "By entering glass substrates, it will be possible to respond proactively to the demands of big tech corporations," and "this year and next are periods when profitability improves relatively more than revenue growth."