Brokerage : Mirae Asset Securities
Analyst : Junseo Park
Investment Rating : BUY (Maintained)
Target Price : KRW 180,000 (Maintained)
Core Momentum : Expanding product mix toward industrial MLCCs for AI servers and full-scale AI accelerator FC-BGA shipments defend margins against FX and tariff pressures while securing medium-to-long-term growth.
📊 1. [Valuation & Key Financial Metrics]
- Rating & Target Price: BUY (Maintained), Target Price maintained at KRW 180,000
- Annual Earnings Forecasts (K-IFRS Consolidated):
- 2024A: Revenue KRW 10.294 Trillion / Operating Profit KRW 735 Billion / Net Profit (Controlling) KRW 679 Billion
- 2025F: Revenue KRW 11.070 Trillion / Operating Profit KRW 804 Billion / Net Profit (Controlling) KRW 637 Billion
- 2026F: Revenue KRW 11.615 Trillion / Operating Profit KRW 987 Billion / Net Profit (Controlling) KRW 865 Billion
- 2027F: Revenue KRW 12.779 Trillion / Operating Profit KRW 1.164 Trillion / Net Profit (Controlling) KRW 1.001 Trillion
- Key Valuation Multiples (2024A → 2025F → 2026F → 2027F):
- PER: 14.1x → 18.5x → 13.6x → 11.7x
- PBR: 1.1x → 1.4x → 1.3x → 1.2x
- ROE: 8.2% → 7.1% → 9.1% → 9.9%
- EPS: KRW 8,752 → KRW 8,215 → KRW 11,141 → KRW 13,010
- Dividend Yield: 1.5% → 1.2% → 1.2% → 1.2%
- Quarterly Performance & Outlook:
- 2Q25 Review: Revenue KRW 2.785 Trillion (YoY +8.0%), Operating Profit KRW 213 Billion (YoY +2.4%, OPM 7.6%). Exceeded lowered market consensus despite FX headwinds and tariff uncertainties.
- 3Q25 Preview: Projected Revenue of KRW 2.831 Trillion (YoY +9.0%), Operating Profit of KRW 237.6 Billion (YoY +2.5%, OPM 8.4%).
🚀 2. [Market Opportunities & Business Outlook]
- Component (MLCC) Entering Peak Season & Product Mix:
- Expanded industrial high-value MLCC sales including AI servers drove corporate-wide margin defense.
- 3Q25 component revenue is projected at KRW 1.400 Trillion (YoY +17.0%) backed by peak season effects, with utilization at 94% and healthy inventory below 4 weeks. However, margin improvements may be moderate as incremental volume concentrates in legacy IT.
- Package Solution (FC-BGA) Accelerated High-Value Shift:
- Profitability improved in 2Q25 driven by full-scale AI accelerator substrate shipments.
- FC-BGA revenue is expected to surpass BGA revenue in 2026, with supply tightening projected from 2027 due to expanding CSP investments in custom ASICs. New client acquisition is progressing smoothly.
- Next-Generation Strategic Product Lineup:
- Building mid-to-long term growth drivers with silicon capacitors, glass substrates, and oxide-based solid-state batteries aligned with AI and automotive trends.
- Tangible revenue contributions are expected starting in 2H25 as adoption expands within group affiliates and global tech clients.
- Annual Revenue Projections by Division (2025F → 2026F):
- Component: KRW 5.149 Trillion → KRW 5.558 Trillion
- Package: KRW 2.260 Trillion → KRW 2.607 Trillion
- Optics (Module): KRW 3.658 Trillion → KRW 3.451 Trillion
📝 Editor’s Comment (Perspective)
The analyst views Samsung Electro-Mechanics not merely as a conventional component supplier exposed to currency fluctuations and sluggish legacy IT demand, but as a high-end hardware solutions provider executing a structural transition toward AI server/automotive MLCCs and advanced FC-BGA substrates. Greater significance is attached to ASP defense through high-value product mix optimization and mid-to-long term optionality from next-generation technologies like silicon capacitors and glass substrates rather than short-term consumer IT seasonality.
To verify whether this investment thesis materializes going forward, investors should monitor whether the component division sustains 94% utilization with sub-4-week inventory in 3Q25, whether FC-BGA revenue successfully overtakes BGA revenue by 2026 alongside new global CSP account wins, and whether next-generation products including silicon capacitors and glass substrates generate meaningful commercial sales starting in 2H25. These developments can be tracked through upcoming quarterly earnings releases, official IR materials, 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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