Brokerage : Shinhan Securities
Analyst : Kangho Oh (snowkh@shinhan.com)
Investment Rating : BUY (Maintained)
Target Price : KRW 3,000,000 (Raised)
Core Momentum : Full-scale earnings expansion and valuation re-rating driven by large-scale orders across silicon capacitors and MLCCs alongside high capacity utilization exceeding 90%
📊 1. [Valuation & Key Financial Metrics]
- Rating & Target Price: BUY (Maintained) / Target Price KRW 3,000,000 (Raised by +50%) (Closing price KRW 2,205,000 as of July 1, 2026; upside potential 36.1%)
- Valuation Methodology: Applied Target P/E multiple of 58.5x (raised by 18%, applying 2024–2026 global peer High average) with 2026(E) EPS upgraded by +26%
- Key Financial Metrics & Forecast:
- Revenue (KRW): 2024 KRW 10.2941 Trillion → 2025 KRW 11.3145 Trillion → 2026(E) KRW 13.6311 Trillion → 2027(E) KRW 17.0702 Trillion → 2028(E) KRW 21.8536 Trillion
- Operating Profit (KRW): 2024 KRW 735.0 Billion → 2025 KRW 913.3 Billion → 2026(E) KRW 1.6702 Trillion → 2027(E) KRW 3.2600 Trillion → 2028(E) KRW 4.9054 Trillion
- Net Profit (Controlling) (KRW): 2024 KRW 679.1 Billion → 2025 KRW 706.1 Billion → 2026(E) KRW 1.4213 Trillion → 2027(E) KRW 2.6327 Trillion → 2028(E) KRW 3.9494 Trillion
- Valuation Multiples (PER / PBR / ROE):
- 2024: PER 14.3x, PBR 1.1x, ROE 8.2%
- 2025: PER 28.3x, PBR 2.1x, ROE 7.7%
- 2026(E): PER 121.1x, PBR 15.9x, ROE 14.0%
- 2027(E): PER 65.2x, PBR 13.0x, ROE 22.1%
- 2028(E): PER 43.4x, PBR 10.2x, ROE 26.5%
🚀 2. [Market Opportunities & Business Outlook]
- Validation via Large-Scale Contract Wins:
- Following the KRW 1.6 Trillion silicon capacitor contract in May, an additional ~KRW 450.0 Billion AI server MLCC supply agreement was announced.
- These high-value contracts are estimated to account for over 5% of projected 2027 revenues, demonstrating structural growth in high-end MLCC demand.
- Capacity Utilization & Profitability Leap:
- Component division capacity utilization has trended upward over the past three years (70% → 80% → estimated 90%+).
- Component operating margin is forecast to expand significantly from 10% in 2024 to 27% in 2027.
- High utilization exceeding 90% provides strong operating leverage and blended ASP increases via favorable product mix shifts.
- Mid-to-Long Term Fundamentals:
- Expanding AI hardware market adoption and consecutive Big Tech contract wins secure long-term revenue visibility through 2028.
📝 Editor’s Comment (Perspective)
The analyst views Samsung Electro-Mechanics not merely as a cyclical component supplier, but as a premier global top-tier hardware leader securing structural growth in an AI-driven demand-exceeds-supply environment. This perspective places strategic weight on long-term fundamental strength through 2028—underpinned by major order wins including the KRW 1.6 Trillion silicon capacitor and KRW 450.0 Billion MLCC contracts—and substantial margin expansion driven by Component utilization surpassing 90%.
To evaluate whether this investment thesis unfolds as anticipated, key verification checkpoints include the sequential revenue recognition from the May silicon capacitor and AI server MLCC contracts, the maintenance of Component capacity utilization above 90% alongside the trajectory toward a 27% division operating margin by 2027, and further high-value order wins from global Big Tech clients. Progress on these factors can be tracked through upcoming quarterly earnings releases, investor relations presentations, and official periodic 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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