Brokerage : Hana Securities
Analyst : Kim Min-kyung (minkyung.kim@hanafn.com)
Investment Rating : BUY (Maintained)
Target Price : KRW 3,000,000 (Maintained)
Core Momentum : Full-scale price up-cycle driven by structural supply deficits in AI server high-capacitance MLCCs alongside full capacity utilization in FCBGA
📊 1. [Valuation & Key Financial Metrics]
- Rating & Target Price: BUY (Maintained) / Target Price KRW 3,000,000 (Maintained) (Closing price KRW 879,000 as of July 30, 2026)
- Key Financial Metrics & Forecast:
- Revenue (KRW): 2024 KRW 10.2941 Trillion → 2025 KRW 11.3145 Trillion → 2026(E) KRW 14.5743 Trillion → 2027(E) KRW 17.7787 Trillion
- Operating Profit (KRW): 2024 KRW 735.0 Billion → 2025 KRW 913.3 Billion → 2026(E) KRW 2.0311 Trillion → 2027(E) KRW 4.3325 Trillion
- Net Profit (Controlling) (KRW): 2024 KRW 679.1 Billion → 2025 KRW 706.1 Billion → 2026(E) KRW 1.6104 Trillion → 2027(E) KRW 3.3820 Trillion
- EPS (KRW): 2024 KRW 8,752 → 2025 KRW 9,099 → 2026(E) KRW 20,752 → 2027(E) KRW 43,583
- Valuation Multiples (PER / PBR / ROE):
- 2024: PER 14.15x, PBR 1.08x, ROE 8.16%
- 2025: PER 28.03x, PBR 2.04x, ROE 7.70%
- 2026(E): PER 42.36x, PBR 6.02x, ROE 15.55%
- 2027(E): PER 20.17x, PBR 4.70x, ROE 26.47%
- 2Q 2026 Results (2Q26):
- Revenue: KRW 3.4572 Trillion (+24% YoY, +8% QoQ)
- Operating Profit: KRW 440.4 Billion (+107% YoY, +57% QoQ, OPM 12.7%)
🚀 2. [Market Opportunities & Business Outlook]
- Component Division (MLCC):
- 2Q26 Performance: Commodity MLCC sales grew over 10% QoQ and industrial MLCC sales expanded over 30% QoQ, driving concurrent price and volume gains.
- Supply Dynamics & Price Cycle: Demand for 1005-size 47㎌ MLCC is forecast to surge 7x YoY in 2027 driven by higher rack power density. With tier-1 supplier utilization surpassing the mid-90% range and no major capacity additions planned, supply bottlenecks are worsening.
- LTA Status: Finalized LTAs with 10 major CSPs and semiconductor companies, with ongoing negotiations for over 10 additional clients. Production shift toward high-capacitance parts is causing capacity cannibalization, lifting commodity prices as well.
- Substrate Division (FCBGA & BGA):
- FCBGA: Revenue grew approximately 8% QoQ in Q2 due to higher utilization and ASP improvements; full capacity utilization expected in 2H 2026 will accelerate growth.
- BGA: Favorable market environment sustained by supply reductions from major substrate peers reallocating capacity; further pricing negotiations planned.
- Optics & Communication Division:
- Maintained stable ASPs despite customer BoM cost pressures.
📝 Editor’s Comment (Perspective)
The analyst views Samsung Electro-Mechanics not as a cyclical component maker vulnerable to short-term set demand or share price volatility, but as an essential high-margin semiconductor component platform securing strong supplier dominance and pricing power amid AI server shortages. This perspective prioritizes qualitative margin leverage—achieved via higher penetration of heavy-load AI MLCCs and full utilization across substrate operations—over simple volume metrics.
To evaluate whether this investment thesis is playing out, key verification points include finalizing additional LTAs with over 10 client candidates and securing flexible price increases, monitoring the transition of FCBGA lines into full utilization in 2H26 alongside BGA pricing outcomes, and tracking whether the Component division’s operating margin surpasses previous historical peaks. These developments can be verified through upcoming quarterly earnings reports, official IR disclosures, and periodic 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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