Brokerage : iM Securities
Analyst : Euiyoung Ko
Investment Rating : Buy (Maintained)
Target Price : KRW 180,000 (Maintained)
Core Momentum : Surging demand for high-capacity, ultra-small MLCCs driven by the proliferation of autonomous Navigate On Autopilot (NOA) in EVs and expanding automotive market share accelerate multi-year structural earnings expansion.
📊 1. [Valuation & Key Financial Metrics]
- Rating & Target Price: Buy (Maintained), 12-Month Target Price maintained at KRW 180,000
- Valuation Methodology: Applied a 10-year historical average 12MF P/B target multiple of 1.5x
- Annual Earnings Forecasts (K-IFRS Consolidated):
- 2024A: Revenue KRW 10.294 Trillion / Operating Profit KRW 735.0 Billion / Net Profit KRW 679.0 Billion
- 2025F: Revenue KRW 11.061 Trillion (YoY +7.5%) / Operating Profit KRW 956.2 Billion (YoY +30.1%) / Net Profit KRW 740.0 Billion
- 2026F: Revenue KRW 11.725 Trillion / Operating Profit KRW 1.128 Trillion / Net Profit KRW 899.0 Billion
- 2027F: Revenue KRW 12.429 Trillion / Operating Profit KRW 1.262 Trillion / Net Profit KRW 1.039 Trillion
- Key Valuation Multiples (2024A → 2025F → 2026F → 2027F):
- PER: 14.1x → 13.5x → 11.1x → 9.6x
- PBR: 1.1x → 1.0x → 1.0x → 0.9x
- EV/EBITDA: 5.7x → 4.4x → 3.7x → 3.0x
- ROE: 8.2% → 8.1% → 9.0% → 9.5%
- EPS: KRW 8,752 → KRW 9,535 → KRW 11,591 → KRW 13,393
- BPS: KRW 113,261 → KRW 123,055 → KRW 134,588 → KRW 147,924
- Dividend Yield: 1.5% → 1.6% → 1.8% → 1.8%
- 2025 Quarterly Financial Projections (Revenue / Operating Profit / OPM):
- 1Q25E: Revenue KRW 2.686 Trillion / Operating Profit KRW 203.9 Billion / OPM 7.6%
- 2Q25E: Revenue KRW 2.763 Trillion / Operating Profit KRW 243.5 Billion / OPM 8.8%
- 3Q25E: Revenue KRW 2.962 Trillion / Operating Profit KRW 303.4 Billion / OPM 10.2%
- 4Q25E: Revenue KRW 2.650 Trillion / Operating Profit KRW 205.4 Billion / OPM 7.7%
🚀 2. [Market Opportunities & Business Outlook]
- Automotive MLCC Market Share Gains & Long-Term Expansion:
- In 2024, Samsung Electro-Mechanics recorded KRW 970.0 Billion in automotive MLCC revenue, capturing a ~20% global market share (within a KRW ~5 Trillion addressable market), up +7%p from 13% in 2022.
- Automotive MLCC revenue is projected to reach KRW 1.2 Trillion (22% market share) in 2025 and KRW 1.5 Trillion (24% market share) in 2026, representing 27% and 29% of total MLCC revenue, respectively.
- From 2024 to 2030, the global automotive MLCC market is forecast to grow at an 11% CAGR to KRW 8 Trillion, while company automotive MLCC revenue is projected to outpace the market with a 17% CAGR, reaching KRW 2 Trillion.
- Direct Beneficiary of Autonomous Driving (NOA) Evolution:
- Chinese emerging EV OEMs (BYD, Li Auto, XPENG, NIO, Xiaomi, etc.) are actively adopting Level 3 Navigate On Autopilot (NOA).
- Escalating processing requirements (SoC compute increasing from <30 TOPS to >200 TOPS) and the integration of 10+ cameras alongside LiDAR drive a substantial increase in small, high-capacity MLCC per-vehicle requirements (+1,500–3,000 units for Lv2/Lv3; +3,000–5,000 units for Lv4/Lv5).
- Supplying BMS and ADAS-grade MLCCs across a diversified global EV client base.
- Annual Segment Breakdown (2024A → 2025E):
- Component: Revenue KRW 4.462 Trillion → KRW 5.028 Trillion (YoY +12.7%) / Operating Profit KRW 439.7 Billion → KRW 598.8 Billion (OPM 11.9%)
- Package Solutions: Revenue KRW 2.035 Trillion → KRW 2.253 Trillion (YoY +10.7%) / Operating Profit KRW 157.6 Billion → KRW 236.4 Billion (OPM 10.5%)
- Optics Solutions: Revenue KRW 3.815 Trillion → KRW 3.780 Trillion (YoY -0.9%) / Operating Profit KRW 137.6 Billion → KRW 121.0 Billion (OPM 3.2%)
📝 Editor’s Comment (Perspective)
The analyst views Samsung Electro-Mechanics not as a generic hardware vendor tethered to consumer mobile IT shipment cycles, but as an advanced hardware leader advancing a structural portfolio transformation centered on high-growth automotive MLCCs and automotive cameras. Greater emphasis is placed on market share expansion in automotive MLCCs (projected to climb from 13% in 2022 to 24% by 2026) and a 17% CAGR through 2030 fueled by Chinese EV autonomous driving (NOA) adoption, rather than legacy smartphone seasonality.
To verify whether this investment thesis materializes going forward, investors should monitor whether automotive MLCC revenue reaches KRW 1.2 Trillion in 2025 and KRW 1.5 Trillion in 2026 (reaching a 29% share of MLCC sales), whether global market share in automotive MLCC firmly exceeds 20% alongside steady BMS/ADAS contract wins, and whether Component and Package division operating margins successfully achieve the projected double-digit levels (11.9% and 10.5%, respectively). 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.
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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