[Click e-Stock] "Samsung Electro-Mechanics, Profit Expectations Realized... Target Price Up 22%"

[Asia Economy Reporter Park Jihwan] Samsung Securities on the 28th raised the target price of Samsung Electro-Mechanics from 135,000 KRW to 165,000 KRW, a 22.2% increase, stating that it is the point of transition from an expectation cycle to a profit cycle. The investment opinion was maintained as 'Buy.'

Lee Jongwook, a researcher at Samsung Securities, stated, "Samsung Electro-Mechanics is expected to start realizing profit expectations as the profit margin turnaround of the Component Division (MLCC) begins from the first quarter of this year."

He added, "Following the bottom signals raised since the second half of last year, signs of demand recovery have appeared since 2020," and evaluated, "The increase in sales of 5G smartphones, the potential market opening of mmWave, and the automotive electronics sector have become more clearly focused on electric vehicles."

The researcher emphasized, "Operating profits related to MLCC in the second half of this year and next year are raised to 290 billion KRW and 690 billion KRW respectively, and the operating profit for 2020 is revised upward by 3% to 834.7 billion KRW."

He added, "Judging that the profit turnaround of the Component Division has become clear, MLCC profits for 2021 were raised by 66 billion KRW, and the company's total operating profit for 2021 is estimated to be 1.0176 trillion KRW, an 8% increase."

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