April 20, 2024

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[THE INVESTOR] Samsung Electro-Mechanics will post close to 1 trillion won (US$901.06 million) operating profit this year, said DB Financial Investment on Aug. 29, maintaining a “buy” recommendation and 210,000 won target price.

Its operating profit in the third quarter will come in at 319.2 billion won, up from the previous estimates of 253 billion won. Sales of MLCC in the period will increase 18 percent from the previous quarter and operating profit ratio will surpass 30 percent. Its earnings in the fourth quarter will remain solid and operating profit for the whole year will come in at 982 billion won, said analyst Kwon Seong-ryul.

Generally its fourth-quarter operating profits have fallen significantly due to Samsung Electronics’ smartphone stock adjustment, but currently its main business does not depend heavily on smartphones and the figures will not drop as much. While consensus for its operating profit continues to rise, stock price has fallen 5 percent from the peak, and it will be a chance to purchase , he added.

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