Samsung Electro-Mechanics, Strong Core Business Performance Suggests Potential Record Earnings Next Year

[Asia Economy Reporter Ki-min Lee] There is growing anticipation that Samsung Electro-Mechanics, Samsung's electronic components affiliate, will achieve record-high performance as its core businesses continue to perform well through next year.

On the 19th, according to the financial investment and electronics industries, Samsung Electro-Mechanics is expected to maintain solid results across all business sectors, including multilayer ceramic capacitors (MLCC), camera modules, and semiconductor substrates.

First, next year, not only will the quality of MLCC improve, but the market will also experience quantitative growth, which is seen as having a positive impact on Samsung Electro-Mechanics, according to a consensus in the related industries. Due to the increase in remote work caused by the COVID-19 pandemic, sales of TVs, PCs, and tablets have expanded since the second half of this year. Additionally, 5G networks are being installed worldwide, and sales of 5G smartphones have also begun in earnest. This is expected to expand the overall MLCC market size.

The financial investment sector anticipates that the Component Division, responsible for Samsung Electro-Mechanics' MLCC business, will increase sales by about 20% year-on-year in the fourth quarter of this year. It is also predicted to achieve a growth rate of over 10% compared to this year.

The camera module, the main business of the Module Solutions Division, is also expected to play a key role in Samsung Electro-Mechanics' performance next year. As high-magnification zoom in smartphone cameras continues to attract attention, the industry expects the application of folded (periscope) cameras to expand. Samsung Electro-Mechanics possesses related camera module technology and competitiveness. Samsung Electronics' Galaxy S series and China's Xiaomi currently apply folded cameras.

In a report released yesterday, Daishin Securities stated, "Global smartphone companies such as Apple, Oppo, and Vivo are also presumed to be preparing to enter the folded camera market," and forecasted that Samsung Electro-Mechanics' camera module sales will increase by 35% in the second quarter of next year, the peak season for smartphones, compared to this year.

In the semiconductor substrate sector, sales volume is expected to increase next year due to rising demand driven by the replacement cycle of semiconductors in data centers. Furthermore, the industry expects Samsung Electro-Mechanics to expand its market share based on additional investments made so far.

Kim Rok-ho, a researcher at Hana Financial Investment Securities, recently predicted in a report that "Samsung Electro-Mechanics is expected to record its highest performance as its fundamental conditions improve." Park Kang-ho, a researcher at Daishin Securities, also estimated, "Next year, Samsung Electro-Mechanics' sales will increase by 14.3% to 9.5863 trillion won, and operating profit will rise by 38.4% to 1.1305 trillion won," forecasting record-high results.

This content was produced with the assistance of AI translation services.