[Click eStock] "Samsung Electro-Mechanics to Benefit from AI and Automotive Electrification This Year... Target Price Up"

Goal Raised to 200,000 Won

Daishin Securities on the 9th raised the target price for Samsung Electro-Mechanics to 200,000 KRW, expecting benefits this year from the expansion of the artificial intelligence (AI) industry and automotive electronics. The investment rating was maintained at 'Buy.'

Researcher Park Kang-ho said, "Samsung Electro-Mechanics is expected to benefit from the growth of major information technology (IT) devices in the first half of 2024, AI and on-device technology, and the expansion of automotive electronics," adding, "We estimate operating profit growth rates of 32.7% and 33.6% for 2024 and 2025 respectively compared to the previous year, indicating that the company has entered a phase of significant earnings improvement."

He also added, "The main issues at CES 2024 are the popularization of AI and mobility (autonomous driving and automotive electronics), which are related to Samsung Electro-Mechanics' entire business including substrates, multilayer ceramic capacitors (MLCC), and camera modules. This is expected to lead to portfolio changes and profit improvements in 2024." CES is the world's largest electronics and IT exhibition.

Additionally, he said, "Operating profit for the fourth quarter of 2023 is expected to be 109.4 billion KRW, a 40.6% decrease from the previous quarter, but a rapid recovery is anticipated with 163.9 billion KRW in the first quarter of 2024, a 50% increase from the previous quarter."

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