[Click eStock] "Samsung Electro-Mechanics MLCC, Good for China EV Market"

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On the 3rd, Daishin Securities forecasted that Samsung Electro-Mechanics' performance will improve this year due to increased demand for multilayer ceramic capacitors (MLCC) in China. The investment opinion 'Buy' and the target price of 180,000 KRW were maintained.

MLCCs, made by stacking multiple ceramic dielectric layers and metal electrode layers, are very small in size and support high capacity, making them widely used components in electronic devices such as smartphones, automobiles, home appliances, and 5G devices.

Daishin Securities expects the operating rate of MLCCs to rise this year as Samsung Electro-Mechanics increases supply to electric vehicles (EVs) in China and benefits from the 'Igu Hwan Sin' policy, which provides subsidies for IT device purchases. Samsung Electro-Mechanics' MLCC sales this year are estimated to reach 4.6 trillion KRW, a 13.4% increase compared to last year.

Domestically, camera module sales are expected to increase this year due to the Samsung Electronics Galaxy S25 effect, and Samsung Electronics will start selling new foldable phone models in the second half of the year, leading to increased demand for ultra-small high-capacity MLCCs.

Analyst Park Kang-ho analyzed, "If the increase in demand for IT-oriented MLCCs, such as high-capacity types, is confirmed, the operating profit margin of MLCCs will improve due to fixed cost reductions from higher operating rates and increased high value-added sales from mix effects."

Daishin Securities estimates Samsung Electro-Mechanics' operating profit this year to be 974.3 billion KRW, a 32.6% increase compared to last year.

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