[Click eStock] "Samsung Electro-Mechanics, High-Value Added Share & Utilization Rate Improvement... Profitability Expected"

Daishin Securities Report

Daishin Securities analyzed on the 12th that Samsung Electro-Mechanics will show improved profitability due to an increase in the proportion of high value-added products and improved operating rates. It is expected to post results exceeding the market forecast for the second quarter. Accordingly, the investment opinion 'Buy' and the target price of 190,000 KRW were maintained.

Park Kang-ho, a researcher at Daishin Securities, said, "Samsung Electro-Mechanics' operating profit for the second quarter of this year is expected to increase by 40.1% compared to the previous quarter to 196.2 billion KRW," adding, "This exceeds the market expectation of 189.5 billion KRW." He further analyzed, "The operating profit estimate for the third quarter is also expected to increase by 23.4% to 242.1 billion KRW, indicating a favorable profitability trend."

Regarding investment points based on the favorable second-quarter performance outlook, he cited increased sales of MLCC (Multi-Layer Ceramic Capacitors) and improved profitability through expanded operating rates, as well as supplying cameras for Google's foldable phones.

Researcher Park stated, "The MLCC operating rate continues to expand due to the effect of new product launches by PC and smartphone companies, and the increase in automotive sales will contribute to profitability improvement through mix enhancement," adding, "Sales expansion is expected due to the peak season effect of camera modules and substrates, as well as increased demand focused on high value-added products."

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