[Click eStock] "Samsung Electro-Mechanics, the Top Beneficiary in the Folded Camera Era"

Operating Profit Expected to Reach 1.1305 Trillion Won This Year... Largest Scale Ever

[Asia Economy Reporter Minwoo Lee] Samsung Electro-Mechanics is expected to enter the era of operating profit exceeding 1 trillion KRW, driven by the increasing trend of smartphones equipped with folded cameras.

On the 6th, Daishin Securities forecasted that Samsung Electro-Mechanics will achieve sales of 9.586 trillion KRW and an operating profit of 1.1305 trillion KRW this year. Compared to last year's performance forecast, sales are expected to increase by 58.9% and operating profit by 38.4%. In particular, the operating profit is expected to reach an all-time high.

They predicted growth across all business sectors, including increased sales of multilayer ceramic capacitors (MLCC), camera modules, and semiconductor substrates. The expansion of the folded camera ratio in camera modules is especially noteworthy. Kangho Park, a researcher at Daishin Securities, stated, "The production ratio of the Ultra model among Samsung Electronics' Galaxy S21 series is estimated to increase from 25% last year to 40% this year, maximizing the mix effect. Additionally, by taking charge of high-pixel cameras in the high-end segment of the Galaxy A series, it is expected to positively contribute in terms of operating rate."

Currently, Samsung Electro-Mechanics is the only producer of folded cameras, and with Samsung Electronics' acquisition of Corephotonics, it is evaluated to have competitiveness in enhancing high-magnification zoom functions through shared patents on structures, internalized actuators (ball-type, OIS), and lens technology. Researcher Park noted, "Based on experience supplying to Chinese smartphone companies Xiaomi and Oppo, it is believed that they are pursuing additional supply to global smartphone manufacturers," indicating potential for future growth.

Against this backdrop, Daishin Securities maintained a 'Buy' investment rating and a target price of 220,000 KRW for Samsung Electro-Mechanics. The closing price the previous day was 180,000 KRW.

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