April 25, 2024

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[THE INVESTOR] Samsung Electro-Mechanics’ earnings are improving faster than expected, said KB Investment and Securities on April 4, maintaining a “buy” recommendation and raising the target price to 140,000 won (US$132.59) from 125,000 won.

Its operating profit in the first quarter will reach 141.4 billion won, estimated analyst Kim Dong-won, adjusting the figure from previous 122.2 billion won.
MLCC parts for electric vehicles will account for 14 percent of its yearly revenue, from last year’s 1 percent, and to 33 percent next year. Its manufacturing capacity for the products will leap to 3 billion units per month by the end of this year from the current 600 million, forecast the analyst. 

Operating profit this year will come in at 697 billion won and 884.7 billion won next year, according to Kim.

Its stock price is ready to surge and the company’s annual operating profit will reach 1 trillion won soon, added the analyst. 

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