Brokerage : Daishin Securities
Analyst : Kangho Park (kangho.park@daishin.com)
Investment Rating : BUY (Maintained)
Target Price : KRW 2,800,000 (Maintained)
Core Momentum : Maximal product mix improvements and structural upward revisions in earnings forecasts driven by worsening supply shortages in server and automotive MLCCs and FC BGAs
📊 1. [Valuation & Key Financial Metrics]
- Rating & Target Price: BUY (Maintained) / 6-Month Target Price KRW 2,800,000 (Maintained) (Closing price KRW 879,000 as of July 30, 2026)
- Valuation Basis: Applied upper-end average of 2027(E)–2028(E) EPS (maintaining valuation re-rating and premium)
- Annual Earnings Forecast Upgrades:
- 2026(E) EPS (Controlling) raised by +8.7% to KRW 19,803; Operating Profit raised by +12.6% to KRW 1.966 Trillion
- 2027(E) EPS (Controlling) raised by +21.5% to KRW 32,366; Operating Profit raised by +24.1% to KRW 3.232 Trillion
- Key Financial Metrics & Forecast:
- Revenue (KRW): 2024 KRW 10.294 Trillion → 2025 KRW 11.314 Trillion → 2026(E) KRW 14.393 Trillion → 2027(E) KRW 17.907 Trillion → 2028(E) KRW 20.141 Trillion
- Operating Profit (KRW): 2024 KRW 735.0 Billion → 2025 KRW 913.0 Billion → 2026(E) KRW 1.966 Trillion → 2027(E) KRW 3.232 Trillion → 2028(E) KRW 3.943 Trillion
- Net Profit (Controlling) (KRW): 2024 KRW 679.0 Billion → 2025 KRW 706.0 Billion → 2026(E) KRW 1.537 Trillion → 2027(E) KRW 2.512 Trillion → 2028(E) KRW 3.080 Trillion
- EPS (KRW): 2024 KRW 8,752 → 2025 KRW 9,099 → 2026(E) KRW 19,803 → 2027(E) KRW 32,366 → 2028(E) KRW 39,692
- Valuation Multiples (PER / PBR / ROE):
- 2024: PER 14.1x, PBR 1.1x, ROE 8.2%
- 2025: PER 28.0x, PBR 2.1x, ROE 7.7%
- 2026(E): PER 52.0x, PBR 6.1x, ROE 14.9%
- 2027(E): PER 31.8x, PBR 5.0x, ROE 20.3%
- 2028(E): PER 25.9x, PBR 4.0x, ROE 20.1%
- 2Q 2026 Preliminary Results (2Q26):
- Revenue: KRW 3.457 Trillion (+24.2% YoY, +7.7% QoQ)
- Operating Profit: KRW 440.0 Billion (+106.7% YoY, +57.0% QoQ, beating consensus of KRW 406.0 Billion by +8.4%)
🚀 2. [Market Opportunities & Business Outlook]
- Component Division (MLCC):
- 2Q26 Performance: Revenue reached KRW 1.650 Trillion (+29% YoY, +17% QoQ), fueled by data center applications including AI server networking and power modules.
- Supply-Demand Dynamics: Severe supply bottleneck with only Samsung Electro-Mechanics and Murata capable of addressing server MLCC demand. Capacity utilization for Korean and Japanese tier-1 suppliers is expected to remain in the upper-90% range.
- Order Wins & Next-Gen Components: Trend toward longer-term agreements confirmed by recent KRW 749.1 Billion order win. Full revenue recognition from next-generation silicon capacitors in 2027 to drive structural re-rating.
- Package Solutions Division (FC BGA):
- 2Q26 Performance: Revenue reached KRW 771.6 Billion (+37% YoY, +6% QoQ).
- Market Opportunities: Strong demand from Big Tech and hyperscalers focusing on AI semiconductors and data centers. Expanding market share in premium substrates on par with Japanese peers.
- Optics Division:
- 2Q26 Revenue reached KRW 1.040 Trillion (+10% YoY, -4% QoQ).
- Quarterly Profit Trajectory:
- Projected Operating Profit of KRW 613.0 Billion in 3Q26 and KRW 632.3 Billion in 4Q26, continually setting new quarterly records.
📝 Editor’s Comment (Perspective)
The analyst views Samsung Electro-Mechanics not merely as a component maker dependent on consumer electronics recovery, but as an indispensable hardware platform solidifying global tier-1 dominance amid severe AI and data center supply shortages. This perspective emphasizes the steep structural upward revisions in earnings driven by expanding long-term contracts (LTAs) and premium product mix improvements within a tight duopolistic supply structure alongside Japanese peers.
To evaluate whether this investment thesis is playing out, key verification points include achieving quarterly operating profits above KRW 600 Billion in 3Q and 4Q 2026, sustaining MLCC utilization rates in the upper-90% range, expanding premium FC BGA market share among global hyperscalers, and monitoring commercial revenue contribution from silicon capacitors starting in 2027. These developments can be tracked via upcoming quarterly earnings announcements, investor relations disclosures, and official regulatory filings.
📢 Disclaimer & Source
Source: This content has been structured and newly written based on officially disclosed financial facts and data from brokerage reports.
Investment Risk Notice: This content is provided for informational and linguistic reference purposes only. Under no circumstances does it constitute financial advice or a recommendation to buy or sell any specific securities. All investment decisions and financial responsibilities rest entirely with the investor.
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