Samsung Electro-Mechanics is up more than 10% early in the session. As the securities industry raised its target price to 2 million won and projected strong results, buying appears to be pouring in.
As of 9:30 a.m., Samsung Electro-Mechanics was trading at 1.48 million won on the Korea Exchange, up 140,000 won (10.45%) from the previous session. Early in the session, it climbed to 1.511 million won, hitting an all-time high.
Shinhan Investment & Securities and SK Securities on this day raised Samsung Electro-Mechanics' target price to 2 million won. With a "supply shortage" continuing in multilayer ceramic capacitors (MLCC) and the substrates segment, Samsung Electro-Mechanics is expected to leap into a core value chain.
Oh Kang-ho, an analyst at Shinhan Investment & Securities, said, "Expanding sales of high value-added products and expectations for higher supply prices are where this differs from past cycles," and added, "A leap to a leading global components maker and structural growth are expected."
Shinhan Investment & Securities raised Samsung Electro-Mechanics' target price-to-earnings ratio by 20% from its previous level to 49.6 times, and changed the earnings per share (EPS) application year from 2027 to 2028. In particular, it lifted its 2028 EPS outlook by 33% from its prior estimate, reflecting expectations for future earnings improvement.
Park Hyeong-woo, an analyst at SK Securities, said, "Along with memory, substrates and MLCCs are emerging as key components of artificial intelligence (AI)," and explained, "Samsung Electro-Mechanics is the only global components company that produces both MLCCs and flip-chip ball grid array (FCBGA) in-house, and the synergy that occurs when the two product families are combined within one company is what sets it apart from other components firms."