Brokerage : IBK Securities
Analyst : Woon-ho Kim
Investment Rating : BUY (Maintained)
Target Price : KRW 330,000 (Raised)
Core Momentum : Continued corporate revenue growth and margin expansion driven by easing Q4 seasonality, expanding AI server/ASIC exposure, and the rising share of Non-IT MLCCs in 2026.
📊 1. [Valuation & Key Financial Metrics]
- Investment Rating & Target Price: BUY maintained, Target Price raised by 22.2% from KRW 270,000 to KRW 330,000, reflecting upward revisions in EPS estimates (2025E EPS raised from KRW 9,344 to KRW 9,968; 2026E EPS raised from KRW 11,481 to KRW 12,219).
- Base Share Price (As of Dec 2, 2025): KRW 252,000 (Market Cap: KRW 19.16 Trillion, Shares Outstanding: 77.60M, Foreign Ownership: 38.5%, 2025F Dividend Yield: 0.8%)
- Valuation Multiples & Trend:
- P/E: 2024: 14.1x → 2025(E): 25.1x → 2026(E): 20.5x → 2027(E): 22.2x
- P/B: 2024: 1.1x → 2025(E): 2.0x → 2026(E): 1.9x → 2027(E): 1.8x
- EV/EBITDA: 2024: 5.9x → 2025(E): 9.9x → 2026(E): 8.4x → 2027(E): 8.4x
- ROE: 2024: 8.2% → 2025(E): 8.5% → 2026(E): 9.6% → 2027(E): 8.2%
- Earnings Forecast Summary:
- 2025(E): Revenue KRW 11.27 Trillion, Operating Profit KRW 910.0 Billion (OPM 8.1%), Net Profit (Controlling) KRW 774.0 Billion, EPS KRW 9,968 (+13.9% YoY).
- 2026(E): Revenue KRW 12.41 Trillion (+10.0% YoY), Operating Profit KRW 1.21 Trillion (+32.7% YoY, OPM 9.7%), Net Profit (Controlling) KRW 948.0 Billion, EPS KRW 12,219 (+22.6% YoY).
- 2027(E): Revenue KRW 12.69 Trillion, Operating Profit KRW 1.13 Trillion (OPM 8.9%), Net Profit (Controlling) KRW 874.0 Billion, EPS KRW 11,265.
- 4Q25 Preview:
- Projected Revenue of KRW 2.86 Trillion (-1.0% QoQ) and Operating Profit of KRW 235.7 Billion (+9.4% QoQ), exceeding previous internal forecasts due to mitigated off-season seasonality.
🚀 2. [Market Opportunities & Business Outlook]
- 4Q25 Segment Trends:
- Revenue across non-package divisions expected to contract slightly (Component -2.4% QoQ, Optics -2.6% QoQ), yet overall 4Q results are forecast to beat previous estimates due to AI demand and ongoing cost improvements easing seasonal off-peak headwinds.
- 2026 AI-Driven Divisional Growth Outlook:
- Company-wide: Revenue projected at KRW 12.41 Trillion (+10.0% YoY) and Operating Profit at KRW 1.21 Trillion (+32.7% YoY), supported by ~10% top-line growth across major divisions.
- Package Solution Division: Revenue projected to rise +10.9% YoY; operating profit margin expected to advance into the 10% range driven by a higher mix of server and AI ASIC substrates.
- Component Division: Revenue projected to grow +10.0% YoY; operating profit margin expected to reach 14.7% supported by a steadily increasing Non-IT MLCC portion.
- Optics & Communication Division: Revenue projected to rise +6.8% YoY, with profitability expected to remain comparable to prior-year levels.
📝 Editor’s Comment (Perspective)
The covering analyst views Samsung Electro-Mechanics as a company dampening traditional Q4 off-season volatility through AI-driven demand and cost reductions, while positioning all major divisions for simultaneous top-line growth and margin expansion in 2026. The perspective emphasizes structural earnings growth underpinned by expanding AI server/ASIC exposure within the Package division and a rising proportion of Non-IT MLCCs in the Component division.
To verify whether this investment thesis materializes, key trackable checkpoints include: 1) whether 4Q25 financial results officially beat previous expectations on mitigated seasonal headwinds; 2) the Package division achieving a 10% range operating margin through AI server and ASIC revenue growth; and 3) the Component division attaining an operating margin of 14.7% alongside continuous expansion in Non-IT MLCC revenue share. These developments can be monitored through upcoming quarterly earnings announcements, official IR materials, regulatory filings, and corporate disclosures.
📢 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)
