Brokerage : Daishin Securities
Analyst : Kangho Park
Investment Rating : BUY (Maintained)
Target Price : KRW 180,000 (Maintained)
Core Momentum : Despite near-term earnings moderation driven by sharp FX declines, structural global competitiveness continues to strengthen via expanding sales in automotive MLCCs, AI FC-BGA, and next-generation platforms.
📊 1. [Valuation & Key Financial Metrics]
- Rating & Target Price: BUY (Maintained), 6-Month Target Price maintained at KRW 180,000
- Valuation Methodology: Applied a target P/E multiple of 19.6x (5-year historical upper average) to 2025F earnings
- Annual Earnings Forecast Revisions (K-IFRS Consolidated):
- 2024A: Revenue KRW 10.294 Trillion / Operating Profit KRW 735 Billion / Net Profit (Controlling) KRW 679 Billion
- 2025F (Revised): Revenue KRW 11.252 Trillion / Operating Profit KRW 880 Billion / Net Profit (Total) KRW 730 Billion / Net Profit (Controlling) KRW 710 Billion
- 2026F (Revised): Revenue KRW 12.062 Trillion / Operating Profit KRW 1.024 Trillion / Net Profit (Total) KRW 889 Billion / Net Profit (Controlling) KRW 871 Billion
- 2027F: Revenue KRW 13.032 Trillion / Operating Profit KRW 1.184 Trillion / Net Profit (Controlling) KRW 968 Billion
- Key Valuation Multiples (2024A → 2025F → 2026F → 2027F):
- PER: 14.1x → 14.4x → 11.7x → 10.5x
- PBR: 1.1x → 1.0x → 1.0x → 0.9x
- ROE: 8.2% → 7.8% → 8.9% → 9.2%
- EPS: KRW 8,752 → KRW 9,155 → KRW 11,223 → KRW 12,479
- BPS: KRW 113,261 → KRW 120,921 → KRW 130,654 → KRW 141,647
- Quarterly Performance & Outlook:
- 2Q25 Preview: Projected Revenue of KRW 2.708 Trillion (YoY +5.3%, QoQ -1.1%), Operating Profit of KRW 208.6 Billion (YoY -1.4%, QoQ +4.0%, OPM 7.7%). Operating profit is expected to slightly miss the consensus (KRW 217.3 Billion) due to a sharp drop in the KRW/USD exchange rate (April 1,441 → May 1,390.5 → June 1,365.5).
- 3Q25 Preview: Projected Revenue of KRW 2.917 Trillion (YoY +12.3%, QoQ +7.7%), Operating Profit of KRW 246.0 Billion (YoY +6.2%, QoQ +17.9%).
🚀 2. [Market Opportunities & Business Outlook]
- Component (MLCC) Automotive-Driven Utilization Uptrend:
- Automotive MLCC lineup is expanding into high-temperature, high-voltage, and high-reliability products, driving market share gains among EV and ICE OEMs while reducing exposure to legacy consumer IT.
- Driven by higher-than-expected automotive sales, 2Q25 MLCC utilization is estimated to exceed forecasts, reaching the high-80% range.
- Package Substrate (FC-BGA) Expansion into AI and Autonomous Driving:
- Commenced shipments for AI accelerator substrates; growing revenue share from server and networking markets bolsters long-term competitiveness.
- Expanding application of FC-BGA into autonomous driving chips accelerates incremental revenue recognition.
- Optics Solutions & Next-Generation Catalysts:
- Camera modules are diversifying from smartphones into EVs and autonomous driving, with expected benefits from Tesla’s robotaxi commercial rollout.
- Actively supplying glass substrate samples to global clients including Apple, with commercial mass production and revenue recognition targeting 2H27.
- Securing additional pipeline opportunities aligned with the emerging humanoid robotics sector.
📝 Editor’s Comment (Perspective)
The analyst views Samsung Electro-Mechanics not as an enterprise constrained by near-term margin headwinds from sharp FX declines and tariff uncertainties, but as an advanced electronics hardware manufacturer successfully executing a structural transformation toward automotive, AI, autonomous driving, and humanoid robotics. Greater significance is attached to qualitative portfolio diversification and capacity utilization defense in high-reliability automotive MLCCs and AI accelerator FC-BGA substrates rather than short-term currency volatility.
To verify whether this investment thesis materializes going forward, investors should monitor whether 2Q25 results confirm MLCC utilization in the high-80% range despite FX headwinds, whether revenue recognition for AI accelerator and autonomous driving FC-BGA substrates scales continuously, and whether glass substrate sampling for Tier-1 global clients remains on schedule for 2H27 mass production. These developments can be tracked through upcoming quarterly earnings releases, official IR presentations, 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.
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