Following My Brother... Samsung Electro-Mechanics and Samsung SDI Also Deliver a High Kick

Samsung Electronics Followed by Consecutive Record Highs
Rising Expectations Drive Improved Earnings Outlook

[Asia Economy Reporters Song Hwajeong and Gu Eunmo] Following Samsung Electronics' continued record-high rally, surpassing 90,000 KRW, Samsung Electro-Mechanics and Samsung SDI have also consecutively hit all-time highs, showing strong performance.

As of 9:25 AM on the 14th, Samsung Electro-Mechanics was trading at 206,000 KRW, up 2,500 KRW (1.23%) from the previous day. After rising more than 5% the day before, it has maintained an upward trend for two consecutive days. The previous day, Samsung Electro-Mechanics closed at 203,500 KRW, up 5.44% (10,500 KRW). This marked the first time the stock price exceeded 200,000 KRW at closing, and during intraday trading, it even rose to 215,500 KRW. Samsung Electro-Mechanics’ stock price, which had maintained a moderate upward trend last year, has shown a steep upward curve since November last year, recording a 52.4% increase up to the previous day. Especially, in the early-year market led by individual investors, foreign investors have net purchased 124.1 billion KRW, pushing the stock up 14.3% this year alone.

Samsung SDI also closed at an all-time high the previous day. Samsung SDI recorded 754,000 KRW, up 1.21% from the previous day, achieving an all-time high at closing. On the 11th, it even rose to 773,000 KRW during intraday trading. Samsung SDI has risen 20% since the beginning of this year.

The strong stock price of Samsung Electro-Mechanics is interpreted as being driven by expectations that the supply and demand situation for multilayer ceramic capacitors (MLCC) will proceed favorably for Samsung Electro-Mechanics. MLCC is a material that stores electricity and supplies it to semiconductors and other components, closely linked to the industrial conditions of smartphones and electric vehicles. Recently, while demand has steadily expanded due to growth in front-end industries such as IT and automotive electric and electronic devices (electric components), supply is expected to increase only limitedly due to labor shortages, expanding the supply-demand imbalance. Despite the recent sharp rise in stock prices, there is still room for further growth. Lee Gyuha, a researcher at NH Investment & Securities, forecasted, "The full-scale price increase of Samsung Electro-Mechanics will occur after March, when Taiwanese companies raise MLCC prices and smartphone shipments from Chinese companies like Xiaomi and Oppo begin to rise significantly."

Samsung SDI’s stock price rise is attributed to expectations of global electric vehicle market expansion and improved earnings. So Hyuncheol, a researcher at Shinhan Financial Investment, said, "Considering the global electric vehicle dominance competition and the forecast of a turnaround to profitability in automotive batteries this year, we have raised the target price from 750,000 KRW to 900,000 KRW. Although the stock price has tripled over the past year, which may cause concerns about further increases, the focus should be on the benefits from aggressive electric vehicle expansion by U.S. companies that exceed expectations."

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