April 19, 2024

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[THE INVESTOR] Samsung Electro-Mechanics’ profits will be on an upturn, said KB Investment and Securities on Sept. 7, maintaining a “buy” recommendation and raising the target price to 220,000 won (US$195.82) from 210,000 won.

Its operating profit this year and next will be higher than the previous estimates at 978.6 billion won and 1.4 trillion won, up 8.1 percent and 8.9 percent, respectively. From the third quarter, on the back of new smartphone releases in Korea and China and growing demand, price of MLCC will increase at an average between 10-15 percent every quarter. 

The manufacturing line of MLCC which started operations in the third quarter is running smoothly, bolstering the average sale price. In the second half, smartphones will upgrade to rear multiple cameras, so the operating ratio and average sale price of modules is surging, said analyst Kim Dong-won. 

The company’s operating profit in the third quarter will soar 196 percent on-year to 305.5 billion won, beating market consensus, and continue to rise to 312.4 billion won in the next quarter, estimated the analyst. 

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