[Research] Samsung Electro-Mechanics (009150) – SK Securities | Global Tier-1 Multiples · Passive-Substrate Synergy · Embedded & Si-Cap / 2026-05-26

Brokerage : SK Securities

Analyst : Hyungwou Park (R.A Youngwhan Jeong)

Investment Rating : BUY (Maintained)

Target Price : KRW 2,000,000 (Raised)

Core Momentum : Valuation re-rating justified by a globally unique business model integrating proprietary MLCC and FCBGA manufacturing, scalable embedded architectures, a KRW 1.6 Trillion silicon capacitor LTA, and next-generation glass substrate roadmaps

📊 1. [Valuation & Key Financial Metrics]

• Rating & Target Price: BUY (Maintained) / Target Price KRW 2,000,000 (Raised) (Closing price KRW 1,340,000 as of May 22, 2026; upside potential 49.3%)
• Valuation Methodology: Applied a Target P/E multiple of 59x (global component tier-1 high multiple) to 2027(E) EPS of KRW 24,576, reflecting simultaneous upward revisions in earnings estimates and valuation multiples
• Key Financial Metrics & Forecast:
  • Revenue (KRW): 2025 KRW 11.314 Trillion → 2026(E) KRW 13.414 Trillion → 2027(E) KRW 15.911 Trillion → 2028(E) KRW 18.099 Trillion
  • Operating Profit (KRW): 2025 KRW 913.0 Billion → 2026(E) KRW 1.567 Trillion → 2027(E) KRW 2.443 Trillion → 2028(E) KRW 3.293 Trillion
  • Operating Profit Margin (OPM): 2025 8% → 2026(E) 12% → 2027(E) 15%
  • Net Profit (Controlling) (KRW): 2026(E) KRW 1.258 Trillion → 2027(E) KRW 1.907 Trillion → 2028(E) KRW 2.615 Trillion
  • EPS (KRW): 2026(E) KRW 16,207 → 2027(E) KRW 24,576 → 2028(E) KRW 33,703
  • Valuation Multiples (PER / PBR / ROE):
    • 2026(E): PER 82.7x, PBR 9.5x, ROE 12.4%
    • 2027(E): PER 54.5x, PBR 8.2x, ROE 16.3%
    • 2028(E): PER 39.8x, PBR 6.9x, ROE 19.0%

🚀 2. [Market Opportunities & Business Outlook]

• Segmental Financial Breakdown & Outlook:
  • Component Division (MLCC & EMC):
    • Revenue: 2025 KRW 5.198 Trillion → 2026(E) KRW 6.326 Trillion (MLCC KRW 5.812 Trillion) → 2027(E) KRW 7.960 Trillion (MLCC KRW 7.035 Trillion).
    • Operating Profit: 2025 KRW 609.0 Billion (12% OPM) → 2026(E) KRW 979.0 Billion (15% OPM) → 2027(E) KRW 1.494 Trillion (19% OPM).
    • 1Q26 capacity utilization remained robust at 91% despite off-peak seasonality, with inventory cycles at 4 weeks (below the 5-week normal level), signaling the onset of an MLCC price up-cycle following memory trends.
  • Package Solutions Division (FCBGA & BGA):
    • Revenue: 2025 KRW 2.302 Trillion → 2026(E) KRW 3.184 Trillion (FCBGA KRW 2.007 Trillion) → 2027(E) KRW 3.853 Trillion (FCBGA KRW 2.625 Trillion).
    • Operating Profit: 2025 KRW 135.0 Billion (6% OPM) → 2026(E) KRW 457.0 Billion (14% OPM) → 2027(E) KRW 810.0 Billion (21% OPM).
    • Accelerating demand for large-area, multi-layer AI accelerator and server CPU substrates is driving steep margin expansion.
  • Optics & Communication Division:
    • Revenue: 2025 KRW 3.814 Trillion → 2026(E) KRW 3.905 Trillion → 2027(E) KRW 4.097 Trillion.
    • Operating Profit: 2025 KRW 169.0 Billion (4% OPM) → 2026(E) KRW 131.0 Billion (3% OPM) → 2027(E) KRW 139.0 Billion (3% OPM).
• Synergy Between Passives and Substrates (Globally Unique Structure):
  • SEMCO is the sole global manufacturer producing both MLCCs and FCBGA substrates in-house, unlocking unique synergies as AI packaging demands embedded passive substrates.
  • Proprietary technology roadmap spanning ‘MLCC > FCBGA > Embedded Substrates > Silicon Capacitors (Si-Cap) > Glass Substrates’.
  • A KRW 1.6 Trillion long-term supply contract for silicon capacitors accelerates commercialization with high margin contributions via a fabless structure, with long-term plans to embed Si-Caps into glass substrates.

📝 Editor’s Comment (Perspective)

The analyst views Samsung Electro-Mechanics not merely as an isolated component supplier, but as a premier global tier-1 platform uniquely capable of manufacturing and integrating both MLCCs and advanced FCBGAs into embedded architectures. This perspective highlights the beginning of a broad MLCC pricing up-cycle following the memory rally, alongside a technological roadmap extending through KRW 1.6 Trillion silicon capacitor LTAs and proprietary glass substrate embedding, justifying top-tier global valuation multiples (Target P/E 59x).

To evaluate whether this investment thesis unfolds as anticipated, key verification checkpoints include the realization of broad-based MLCC price increases under lean 4-week inventory levels, the sequential revenue recognition of the KRW 1.6 Trillion silicon capacitor contract, the attainment of KRW 2.0+ Trillion in FCBGA revenue with 14%+ Package OPM in 2026, and developmental milestones in glass substrate commercialization. Progress on these fronts can be tracked via upcoming quarterly earnings announcements, 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.

Contact: Compliance and Copyright Inquiries (ksb220805@gmail.com)