Brokerage : IBK Securities
Analyst : Unoh Kim
Investment Rating : BUY (Maintained)
Target Price : KRW 170,000 (Maintained)
Core Momentum : Expanding Non-IT MLCC exposure and transitioning the package substrate mix toward servers and automotive applications secure mid-to-long-term stable growth despite near-term 2H growth moderation.
📊 1. [Valuation & Key Financial Metrics]
- Rating & Target Price: BUY (Maintained), Target Price maintained at KRW 170,000
- EPS Estimate Revisions:
- 2025F EPS: Adjusted downward from KRW 9,535 to KRW 7,442
- 2026F EPS: Adjusted downward from KRW 10,555 to KRW 9,643
- Annual Earnings Forecasts (K-IFRS Consolidated):
- 2024A: Revenue KRW 10.294 Trillion / Operating Profit KRW 735 Billion / Net Profit (Controlling) KRW 679 Billion
- 2025F: Revenue KRW 11.004 Trillion / Operating Profit KRW 803 Billion / Net Profit (Controlling) KRW 578 Billion
- 2026F: Revenue KRW 11.788 Trillion / Operating Profit KRW 944 Billion / Net Profit (Controlling) KRW 748 Billion
- 2027F: Revenue KRW 12.715 Trillion / Operating Profit KRW 1.098 Trillion / Net Profit (Controlling) KRW 838 Billion
- Key Valuation Multiples (2024A → 2025F → 2026F → 2027F):
- PER: 14.1x → 20.4x → 15.8x → 14.1x
- PBR: 1.1x → 1.3x → 1.2x → 1.1x
- EV/EBITDA: 5.9x → 6.5x → 5.6x → 5.0x
- ROE: 8.2% → 6.4% → 7.8% → 8.2%
- Operating Margin (OPM): 7.1% → 7.3% → 8.0% → 8.6%
- Quarterly Performance & Outlook:
- 2Q25 Review: Revenue KRW 2.785 Trillion (QoQ +1.7%), Operating Profit KRW 213 Billion (QoQ +6.3%), slightly beating previous forecasts as revenue and operating profit grew across all divisions except optics.
- 3Q25 Preview: Projected Revenue of KRW 2.808 Trillion (flat QoQ), Operating Profit of KRW 244.7 Billion (QoQ +14.9%).
🚀 2. [Market Opportunities & Business Outlook]
- 2Q25 Segment Performance Review:
- Package division led overall top-line growth with a +13.0% QoQ revenue increase.
- Component (MLCC) division revenue rose +5.3% QoQ.
- Optics solution division revenue contracted -8.2% QoQ.
- 3Q25 Segment Outlook:
- Component division is forecast to grow +8% QoQ, driving overall profitability improvement.
- Package division is expected to achieve modest QoQ growth of ~2%.
- Optics solution division revenue is anticipated to decline by approximately -10% QoQ.
- Mid-to-Long Term Structural Transition:
- Component: Non-IT (industrial and automotive) revenue share within MLCC continues its steady upward trajectory, supported by ongoing new account expansion.
- Package Substrates: Structural portfolio shift from mobile/PC applications to servers and automotive is underway, underpinning qualitative margin expansion.
📝 Editor’s Comment (Perspective)
The analyst views Samsung Electro-Mechanics not as an IT hardware vendor encumbered by slowing second-half consumer electronics momentum, but as an enterprise securing resilient fundamental growth by expanding its Non-IT MLCC mix and transitioning its package substrate business toward servers and automotive electronics. Greater emphasis is placed on new client acquisition and structural portfolio enhancement rather than short-term end-market set volatility.
To verify whether this investment thesis materializes going forward, investors should monitor whether 3Q25 operating profit reaches the projected KRW 244.7 Billion led by component strength, whether the Non-IT revenue share within MLCC maintains its upward trend, and whether the package substrate division demonstrates tangible margin improvements as server and automotive products take a greater share of the portfolio. These developments can be tracked through upcoming quarterly earnings releases, official IR materials, and 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.
Contact: Compliance and Copyright Inquiries (ksb220805@gmail.com)
