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The Korea Herald
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THE INVESTOR
March 29, 2024

Stocks & Bonds

[EQUITIES] ‘Samsung Electro-Mechanics’ profitability to improve’

  • PUBLISHED :October 19, 2017 - 14:42
  • UPDATED :October 19, 2017 - 14:42
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[THE INVESTOR] Samsung Electro-Mechanics’ profits are improving on the back of rising prices of its major product multi-layered ceramic capacitors, said KB Investment and Securities on Oct. 19, maintaining a “buy” recommendation and 130,000 won (US$114.81) target price. 




Its third-quarter revenue will jump 54 percent on-quarter to 109.1 billion won, satisfying market expectations, and will rise to 111.7 billion won in the next quarter, said analyst Kim Dong-won. 

Supply shortage in the MLCC market is pushing the margins, and market leaders Murata and Samsung Electro-Mechanics will see the average sales price increase by 10-15 percent as they focus on products with higher margins, said the analyst. 

Kim raised the operating profit for 2018 to 578.2 billion won, up 3.6 percent from the previous estimates, and suggested its stocks as “the most favorable” among IT stocks. 

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

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