 |
View of Samsung Electro-Mechanics' Suwon plant. (Photo=Samsung Electro-Mechanics) |
[Alpha Biz= Reporter Kim Jisun] Hana Securities raised its target price by about 8.10% to 200,000 won on the 22nd, saying, "Samsung Electro-Mechanics' operating profit outlook will be raised."
Hana Securities forecast Samsung Electro-Mechanics' first-quarter sales and operating profit to be 2.38 trillion won and 178.4 billion won, respectively. This year's sales rose 10% to 9.84 trillion won and operating profit rose 40% to 897.1 billion won.
Hana Securities said, "The main reason for the increase in performance was that Galaxy S24 shipments were better than expected in a favorable exchange rate environment, and the MLCC mix was good."
"The improvement of the MLCC mix is estimated to be due to strong omnidirectional demand and a generative AI server/data center compared to concerns," Hana Securities said. "Although the proportion of generative AI (AI) servers and data centers is small, it is positive that it has contributed to the improvement of the mix due to strong demand. Considering the demand will be good by the end of this year, MLCC will be open to improving the mix."
"The main reason for the rise in earnings is the upward revision of profitability by improving the MLCC mix," Hana Securities said. "The package board sector is also likely to see better profit margins than previously feared due to on-device AI."
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
