[Click eStock] Samsung Electro-Mechanics, Expected to Benefit from Supply Chain Changes

[Asia Economy Reporter Hwang Junho] Daishin Securities maintained the target price of Samsung Electro-Mechanics at 250,000 KRW, anticipating benefits due to the prolonged US-China trade dispute and changes in the perception of the previous supply chain ecosystem caused by COVID-19.

Daishin Securities expects continuous increases in sales and profits after this year due to ongoing restructuring of low-profit businesses and the expansion of competitiveness in core businesses. Samsung Electro-Mechanics' operating profit for the second quarter of this year was 367.2 billion KRW, in line with the market expectation of 368.6 billion KRW.

The three main businesses are expected to gradually narrow the gap with the global number one from their current second place in market share. For semiconductor substrates, a shift to FC BGA and SiP (AiP) is anticipated; MLCC is expected to increase its share in automotive and industrial sectors based on competitive advantages in the IT domain; and camera modules are projected to expand sales for automotive applications leveraging folded camera technology.

Park Kang-ho, a researcher at Daishin Securities, stated, "Samsung Electro-Mechanics' artificial intelligence (AI) and automotive electrification will provide new growth opportunities."

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