Brokerage : IBK Securities
Analyst : Kim Un-ho (unokim88@ibks.com)
Investment Rating : BUY (Maintained)
Target Price : KRW 1,750,000 (Maintained)
Core Momentum : Accelerating earnings growth powered by structural supply shortages evidenced by rare MLCC price hikes alongside expanding high-spec package substrate demand
📊 1. [Valuation & Key Financial Metrics]
- Rating & Target Price: BUY (Maintained) / Target Price KRW 1,750,000 (Maintained) (Closing price KRW 879,000 as of July 30, 2026)
- Earnings Forecast Revisions:
- 2026(E) EPS raised from KRW 17,874 to KRW 19,579
- 2027(E) EPS raised from KRW 28,187 to KRW 28,814
- Key Financial Metrics & Forecast:
- Revenue (KRW): 2024 KRW 10.294 Trillion → 2025 KRW 11.314 Trillion → 2026(E) KRW 14.097 Trillion → 2027(E) KRW 16.316 Trillion → 2028(E) KRW 19.136 Trillion
- Operating Profit (KRW): 2024 KRW 735.0 Billion → 2025 KRW 913.0 Billion → 2026(E) KRW 1.956 Trillion → 2027(E) KRW 3.009 Trillion → 2028(E) KRW 4.874 Trillion
- Operating Profit Margin (OPM): 2024 7.1% → 2025 8.1% → 2026(E) 13.9% → 2027(E) 18.4% → 2028(E) 25.5%
- Net Profit (Controlling) (KRW): 2024 KRW 679.0 Billion → 2025 KRW 706.0 Billion → 2026(E) KRW 1.519 Trillion → 2027(E) KRW 2.236 Trillion → 2028(E) KRW 3.511 Trillion
- EPS (KRW): 2024 KRW 8,752 → 2025 KRW 9,099 → 2026(E) KRW 19,579 → 2027(E) KRW 28,814 → 2028(E) KRW 45,240
- 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 44.9x, PBR 6.2x, ROE 14.7%
- 2027(E): PER 30.5x, PBR 5.2x, ROE 18.5%
- 2028(E): PER 19.4x, PBR 4.1x, ROE 23.7%
🚀 2. [Market Opportunities & Business Outlook]
- MLCC Segment (Significance of Price Hikes):
- Unprecedented Price Increases: MLCC manufacturers traditionally prioritize long-term client relationships over spot price increases; enacting broad price hikes demonstrates acute supply deficits that customers are compelled to accept.
- Profitability Reset: Price hikes—the primary historical catalyst when operating profit margins reached 40%—are driving higher baseline expectations for operating margins going forward.
- Package Substrate Segment (AI Hardware Tailwinds):
- Form Factor Evolution: Increasing chip volumes and processing performance require thicker package layers and wider surface areas.
- Supplier Bottlenecks: Only a limited number of qualified global players can supply these high-spec substrates, solidifying entry into a prolonged growth trajectory.
- Earnings Momentum & Portfolio Strength:
- Record quarterly financial performances are anticipated to continue through year-end, driven by the unique competitive advantage of being the sole player manufacturing both critical AI components (Package Substrates and MLCCs).
📝 Editor’s Comment (Perspective)
The analyst views Samsung Electro-Mechanics not simply as a cyclical hardware component supplier, but as a uniquely positioned industry leader capable of simultaneously manufacturing the two most critical AI hardware components: high-end MLCCs and advanced package substrates. This perspective interprets recent share price weakness as market-wide valuation normalization, while placing strategic emphasis on the fundamental direction—namely, unprecedented pricing power in MLCCs born of structural shortages and rapid earnings acceleration.
To evaluate whether this investment thesis continues to materialize, key verification checkpoints include the continuation of record-breaking quarterly operating results through year-end, the magnitude and durability of MLCC price increases and operating margin expansion, and shipment volumes and official disclosures regarding high-spec AI package substrates. Progress on these fronts can be tracked through 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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