[THE INVESTOR] Samsung Electro-Mechanics will post strong earnings in the second quarter, said Hana Financial Investment on June 18, raising the target price to 180,000 won (US$163.13) from 155,000 won.
Its revenue in the period will increase 11 percent on-year to 1.89 trillion won and operating profit will surge 151 percent to 176.3 billion won, in line with market consensus that has been raised recently. Its component solution sector will propel the earnings of the whole company. The sector will contribute to 99 percent of its annual operating profit this year, and its earnings and stock price this year and next year will depend on MLCC, said analyst Kim Rok-ho.
MLCC for smartphones will still remain in short supply and Samsung’s earnings could further be adjusted upward, added the analyst.
By Hwang You-mee (email@example.com)