Samsung Electro-Mechanics was strong early on the 17th. Buying is seen as flocking in on expectations from the securities industry that earnings will grow on factors such as price hikes for multilayer ceramic capacitors (MLCC).
As of 9:54 a.m. that day, Samsung Electro-Mechanics was trading at 670,000 won, up 31,000 won (4.85%) from the previous trading day. It rose to 680,000 won intraday, setting a new 1-year high.
Samsung Electro-Mechanics has been on an eight-session winning streak since on the 7th. Its market capitalization ranking jumped from 21st to 14th over the same period.
The securities industry analyzed that Samsung Electro-Mechanics is increasing demand amid limited supply, continuing its earnings growth trend. Hana Securities said in a report that day that the effect of MLCC price hikes and a deepening supply constraint for flip-chip ball grid array (FC-BGA) would improve the mix toward high value-added products, which is expected to drive Samsung Electro-Mechanics' mid- to long-term profit growth.
At the same time, it sharply raised Samsung Electro-Mechanics' target price by 47% to 810,000 won from 550,000 won.
Kim Min-gyeong, a researcher at Hana Securities, said, "Given that demand centered on artificial intelligence (AI) servers is expanding to the network and satellite areas, putting both MLCC and FC-BGA into a structural growth phase, the profit growth period will be prolonged."