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Samsung Electro-Mechanics Suwon Plant View. (Photo = Samsung Electro-Mechanics) |
[Alpha Biz= Kim Jisun] Daishin Securities forecasted that Samsung Electro-Mechanics will report strong earnings in the first quarter of this year, driven by improved multilayer ceramic capacitor (MLCC) utilization rates and increased camera module sales due to the Galaxy S25. The firm maintained its "Buy" investment rating and a target price of 180,000 KRW. The previous day's closing price was 132,900 KRW.
Daishin Securities estimated that Samsung Electro-Mechanics' annual operating profit will increase by 32.6% year-on-year to 974.3 billion KRW in 2024. The firm also projected two consecutive years of growth and reaffirmed its preference for the stock in the first half of the year.
Key factors to watch this year include the recovery in MLCC demand and the mix effect leading to additional profit improvements. The expansion of China’s subsidy policies for IT device purchases, coupled with the increasing adoption of on-device functions in smartphones and other IT devices, is expected to drive demand for high-capacity MLCCs. Additionally, the high-value product mix is anticipated to further improve MLCC operating margins.
Camera module sales diversification is expected to gain momentum in the second half of the year. Analyst Park stated, “With Tesla’s autonomous driving service set to launch in the second half of 2025, camera module sales are expected to increase. Samsung Electro-Mechanics is also expected to play a key supply role in Tesla and domestic automakers’ humanoid robotics projects.”
Furthermore, Daishin Securities added, “With the expansion of new foldable phone lineups in the second half of 2025, the supply of folded-zoom cameras to Samsung Electronics and Chinese smartphone manufacturers is expected to rise.”
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
