April 27, 2024

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[THE INVESTOR] Samsung Electro-Mechanics’ operating profit this year will surge 22 percent from the existing estimates to 320.6 billion won (US$285.88 million), said Korea Investment and Securities on May 23.
The securities firm raised the target price to 99,000 won from 83,000 won.

The profits from multi-layer ceramic capacitors is higher than expected and will push the operating profit of passive component division up to 24 percent. Earnings of from the upgraded dual-camera business help the division rise by 5 percent, said analyst Park Gi-hong.

The sector will maintain double-digit operating profit ratio while its major client is preparing to equip its smartphones with a dual-camera module with higher specifications than Apple, explained the analyst. 

Both revenue and operating profit of the company will surge from last year spiking the stock price, added Park, who maintained a “most favorable” rating. 

By Hwang You-mee (glamazon@heraldcorp.com)