Brokerage : Kyobo Securities
Analyst : Bo-young Choi
Investment Rating : Buy (Maintained)
Target Price : KRW 170,000 (Maintained)
Core Momentum : Poised for full-year 2025 earnings expansion driven by expanding Non-IT exposure across AI, robotics, and automotive sectors, supported by China’s trade-in subsidies after passing 4Q24 off-season softness.
📊 1. [Valuation & Key Financial Metrics]
- Investment Rating & Target Price: Buy (Maintained) / KRW 170,000 (Maintained)
- Current Share Price (As of Jan 08, 2025): KRW 131,200
- Key Financial Metrics & Forecast:
- Revenue: 2023A KRW 8.91T → 2024.12E KRW 10.10T (+13.4% YoY) → 2025.12E KRW 11.54T (+14.2% YoY) → 2026.12E KRW 12.54T (+8.7% YoY)
- Operating Profit: 2023A KRW 639.0B → 2024.12E KRW 742.0B (OPM 7.3%) → 2025.12E KRW 919.0B (OPM 8.0%) → 2026.12E KRW 1.07T (OPM 8.5%)
- Net Profit: 2023A KRW 450.0B → 2024.12E KRW 569.0B → 2025.12E KRW 698.0B → 2026.12E KRW 804.0B
- EPS: 2023A KRW 5,617 → 2024.12E KRW 7,105 (+26.5% YoY) → 2025.12E KRW 8,723 (+22.8% YoY) → 2026.12E KRW 10,065 (+15.4% YoY)
- PER: 2023A 27.3x → 2024.12E 17.4x → 2025.12E 15.0x → 2026.12E 13.0x
- PBR: 2023A 1.5x → 2024.12E 1.2x → 2025.12E 1.1x → 2026.12E 1.1x
- ROE: 2023A 5.5% → 2024.12E 6.6% → 2025.12E 7.6% → 2026.12E 8.2%
- 4Q24 Earnings Preview: Projected Revenue of KRW 2.33T (+1.1% YoY, -10.9% QoQ), Operating Profit of KRW 129.5B (+17.4% YoY, -44.3% QoQ, OPM 5.6%), missing market consensus (KRW 157.2B) due to seasonal weakness, lower MLCC shipments, slight utilization decline, and minor inventory build.
🚀 2. [Market Opportunities & Business Outlook]
- Component Division: 4Q fab utilization estimated at 70%, ASP +3%, and inventories managed at ~5 weeks.
- Optics & Communication Solutions: Preparing inventory deliveries for key customer new flagship rollouts in 1Q25, alongside continued expansion of automotive camera module supplies to a North American client.
- Package Solutions: Continues to face persistent price competition in standard BGA and downstream softness in mobile applications.
- 2025 Outlook & Structural Growth Drivers: Full-year 2025 Revenue is projected at KRW 11.54T (+14.2% YoY) with Operating Profit of KRW 918.9B (+23.8% YoY, OPM 8.0%). Growth is underpinned by sustained AI investments, robotics expansion, automotive electronics adoption, and China’s trade-in consumer stimulus accelerating the IT replacement cycle.
📝 Editor’s Comment (Perspective)
The analyst views Samsung Electro-Mechanics not through the lens of short-term 4Q seasonal softness and legacy IT weakness, but as an electronics component supplier entering a multi-year growth phase fueled by application diversification into high-margin Non-IT domains including AI, robotics, and automotive systems. The perspective highlights healthy underlying inventory conditions and policy-driven IT replacement tailwinds as key foundations for 2025 profit acceleration rather than transient quarterly volatility.
To evaluate whether this thesis materializes as projected, key tracking points include the earnings contribution from client new product launches in 1Q25, the pace of automotive camera shipment growth to the North American client, fab utilization recovery above the 70% level in the Component division, and tangible demand uplift from China’s trade-in subsidies. These developments can be monitored through upcoming quarterly financial announcements, official company 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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