[Click eStock] "Samsung Electro-Mechanics, Growth Story Valid for Next Year"

Meritz Securities forecasted on the 13th that Samsung Electro-Mechanics will continue to grow from next year after improving its business structure this year.

Yang Seung-su, a researcher at Meritz Securities, explained, "Due to concerns about the upstream industries, Samsung Electro-Mechanics' stock price has fallen 30.1% from its peak this year," adding, "Looking back at this year, unlike last year's negative growth, Samsung Electro-Mechanics' operating profit is estimated to increase by 18.1% compared to the previous year."

He continued, "Although the shipment growth in the MLCC sector has slowed, the average selling price (ASP) rose by 5.8% compared to the previous year," adding, "This result shows that Samsung Electro-Mechanics' business structure is qualitatively improving."

He emphasized, "This year, the proportion of servers and automotive electronics in Samsung Electro-Mechanics' total sales is estimated at 22.2%," and "It is expected to increase to 28.1% and 33.4% in 2025 and 2026, respectively."

For the fourth quarter, it is estimated to achieve consolidated sales of 2.3529 trillion KRW and operating profit of 142.1 billion KRW. These figures represent increases of 2.0% and 28.7%, respectively, compared to the same period last year. However, it is expected to fall short of the market consensus of 164.6 billion KRW.

Researcher Yang said, "Demand in the industrial and automotive sectors remains solid, but uncertainty about the IT industry recovery continues," and forecasted, "Due to stronger-than-average inventory adjustments, the operating rate is expected to decline compared to previous estimates."

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