[Click eStock] "Samwha Electric Set for Revaluation on AI Data Center Momentum... Expanding High-Value-Added Products"

On April 22, Hanyang Securities analyzed that Samwha Electric is expected to receive a revaluation of its corporate value by expanding its portfolio of high-value-added products, building on the stability of its existing electrolytic capacitor business. The company’s strategy to upgrade its product portfolio targeting AI data centers as well as automotive and telecommunications markets is emerging as a key growth driver.

Junseok Lee, a researcher at Hanyang Securities, stated, "Samwha Electric is adding a lineup of high-value-added products to its core business," and added, "With a stable business foundation in general-purpose products and an increasing proportion of high-value-added products such as S-CAP and Hybrid-CAP, the company’s profit structure is expected to improve."

Samwha Electric is a leading domestic company specializing in aluminum electrolytic capacitors and was listed on the Korea Exchange in 1986. Electrolytic capacitors account for 51.5% of its sales, while goods and other products make up 46.1%. Recently, the company has diversified its product lineup to include 5G and automotive high-voltage miniaturized products as well as S-CAP. Based on key customer references such as Samsung Electronics, SK hynix, and Hyundai Motor, Samwha Electric is currently expanding its presence into the AI data center and automotive markets.

Last year, the company recorded consolidated sales of 230 billion won and an operating profit of 12 billion won, both representing a slight decrease compared to the previous year. Researcher Junseok Lee explained, "This profit slowdown can be interpreted as a result of preemptively reflecting costs for new products," and added, "As the proportion of high-value-added product sales increases in the future, there is a high possibility of improvement in ASP and profitability."

In particular, the proliferation of AI data centers is cited as a core momentum. Lee emphasized, "Although the company tends to be perceived as a simple aluminum electrolytic capacitor manufacturer, it should in fact be evaluated as a value chain player for eSSD power protection components for AI data centers."

Samwha Electric jointly developed the S-CAP with Samsung Electronics in 2019 and began supplying the product thereafter. In 2024, it also started supplying SK hynix, thereby securing references from major domestic memory companies. S-CAP is a key component that maintains power to safely store data within SSDs in the event of a power outage, and its importance is increasing in data centers.

Researcher Junseok Lee analyzed, "As AI servers become more widespread and eSSD capacities increase, the demand for components to protect data is also likely to expand," and stated, "This serves as a key basis for the company’s S-CAP to widen its scope toward data centers." He further added, "If the next-generation AI data centers’ 800V DC power infrastructure is upgraded in parallel, the application of high-performance product lines is likely to expand even further."

The Hybrid-CAP, targeting automotive electronics and 5G markets, is another growth axis. Lee explained, "The company is enhancing its product mix by simultaneously securing S-CAPs for AI data centers and Hybrid-CAPs for automotive and telecommunications applications, based on its aluminum electrolytic capacitor business."

The Hybrid-CAP, which combines electrolytes and conductive polymers, boasts advantages such as high-voltage performance, low ESR, and superior durability. Samwha Electric succeeded in mass-producing the nation’s first conductive polymer hybrid electrolytic capacitor for automobiles in 2017, and has since expanded its applications mainly to automotive and telecommunications equipment.

Researcher Junseok Lee predicted, "As the adoption of electric vehicles and digitalization of automobiles progress alongside the advancement of 5G infrastructure, the need for Hybrid-CAPs is likely to increase even further in the future."

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