Sangsangin Investment & Securities on the 8th said earnings momentum at Samsung Electro-Mechanics is set to continue as the profit center shifts from traditional IT to artificial intelligence (AI) servers and automotive electronics (electrification). It maintained a Buy rating and raised the target price to 310,000 won from 230,000 won. The previous session's closing price for Samsung Electro-Mechanics was 267,500 won.
Jeong Min-gyu, an analyst at Sangsangin Investment & Securities, projected Samsung Electro-Mechanics' fourth-quarter 2025 revenue at 2.8627 trillion won and operating profit at 225.7 billion won. That would be up 14.9% and 96.2%, respectively, from a year earlier. Operating profit is roughly in line with the market consensus of 226.6 billion won.
Jeong said, "With a favorable won-dollar exchange rate and strong demand for high value-added products for AI servers and automotive electronics, utilization rates should remain high even in the seasonal off-peak period." By division, he forecast sales of 1.316 trillion won for the component division, 898.6 billion won for the optical communications division, and 603.1 billion won for the package division.
He expected growth to accelerate in the first quarter of this year. He said, "Samsung Electro-Mechanics is rapidly shifting its business structure toward AI and automotive electronics," adding, "As a result, its reliance on changes in demand for general-purpose IT such as smartphones and home appliances is decreasing, and some potential demand erosion from rising memory prices can be offset."
He added, "As a supplier-friendly structure takes shape in the high-capacity MLCC market for AI servers, both prices and shipments are set to rise," and "For package substrates as well, supply to North American cloud service providers (CSPs) and fabless customers will expand, positioning Samsung Electro-Mechanics as a key player in the AI infrastructure value chain." Accordingly, he presented first-quarter 2026 revenue and operating profit of 3.0911 trillion won and 93.8 billion won, respectively.