[THE INVESTOR] Samsung Electro-Mechanics’ earnings will pick up in the latter half, said Mirae Asset Daewoo on May 28, maintaining a “buy” recommendation and raising the target price to 162,000 won (US$150.81) from 148,000 won.
As MLCC market remains favorable, earnings improvement will accelerate. Component solutions will propel the advance as MLCC price continues to rise and sales of higher-margin products are increasing while demand for vehicles and industrial equipment is surging, said analyst Park Won-jae.
The component solution sector’s operating profit ratio is likely to be maintained at 20 percent, and there is no need to worry about decline in average sales price for now. Revenue in the second quarter will reach 1.88 trillion won with operating profit of 160 billion won, up 9.9 percent and 126.7 percent on-year, respectively.
By Hwang You-mee (email@example.com)