Samsung Electro-Mechanics(009150) is rising more than 8% even in a steep plunge where the downtrend in the KOSPI market is clear. Expectations for strong second-quarter results and expanding demand for multilayer ceramic capacitors (MLCC) are converging, drawing in buyers.
On the 3rd in the Korea Exchange, Samsung Electro-Mechanics was trading at 1,244,000 won as of 9:54 a.m., up 102,000 won (8.93%) from the previous session. Earlier, on the 31st of last month, Samsung Electro-Mechanics hit the upper limit (29.92%) and closed at 1,142,000 won.
The strength of Samsung Electro-Mechanics is attributed to solid second-quarter results this year and the outlook for continued improvement in the MLCC market. As the KOSPI index shows a sharp decline and unstable index conditions unfold, Samsung Electro-Mechanics appears to be attracting concentrated buying based on a differentiated earnings momentum.
Kim Min-gyeong, an analyst at Hana Securities, said, "Although there has been a sharp stock correction recently, the supplier-favorable cycle is strengthening," and analyzed, "With MLCC demand for AI servers surging, profitability in the components division is expected to be pushed above its past peak."