Samsung Electro-Mechanics to benefit from dual-camera flagship phones
PUBLISHED :July 24, 2017 - 15:56
UPDATED :July 25, 2017 - 11:31
[THE INVESTOR] As more flagship smartphones of Samsung Electronics are expected to feature dual-lens cameras, Samsung Electro-Mechanics will see significant profit increase in the next couple of years, market analysts forecast on July 24.
Park Hyug-woo, an analyst from Shinhan Investment, anticipated that the company may have seen its operating profit in the April-June period increase by 366 percent on-year to 70.7 billion won (US$63.3 million) thanks to the camera module supply for Galaxy S8. This is in addition to the increased sales of multi-layer ceramic capacitors, one of the components firms’ core products, and reduced operating loss of the advanced circuit interconnection division.
Predicting that its sales this year would reach 6.93 trillion won with 321.2 billion won in operating profit, he said profits will likely further improve in earnest in the next two years.
“The Galaxy S9 and Note 9 will likely be fitted with a dual-lens camera and some of the firm’s divisions, including the inductance capacitance resistance unit, will post improved profits,” said Park, forecasting that sales of could reach 10 trillion won in 2019.
Other brokerages, such as Daishin Securities, Hyundai Motor Investment & Securities, and Hana Financial Investment, also remained positive on its earnings.
Kim Rok-ho, an analyst from Hana Financial Investment, anticipated the quarterly operating profit would cross the 100-billion-won mark in the July-September period for the first time since 2013.
“Supplies of dual camera modules for Samsung Electronics’ flagship model starting in the latter half this year will also contribute to Samsung Electro-Mechanics’ profits next year,” Kim said.
He anticipated its operating profit will improve 56 percent on-year to 554.1 billion won in 2018, giving a “buy” rating.