[Edaily Reporter Lee Hye-ra] On the 9th, iM Securities maintained its “Buy” rating on #Samsung Electro-Mechanics, noting significant potential for upward revisions to profit estimates due to business growth—including multilayer ceramic capacitors (MLCCs)—driven by expanding demand for artificial intelligence (AI). The firm raised its target price to 2.3 million won, a 28% increase from the previous 1.8 million won.

Park Jeong-ha, an analyst at iM Securities, stated, “The company is a leading AI component stock poised to benefit simultaneously from its MLCC and high-density package semiconductor substrate (FC-BGA) businesses,” adding, “There is a high likelihood that profit estimates will continue to rise significantly through additional price hikes and orders for silicon capacitors (SiCap).”
Park highlighted three key business points.
First is the improvement in the MLCC market. Analyst Park noted, "Prices for general-purpose MLCCs have begun to rise," adding, "There is room to expect a larger price increase than in past cycles."
He projected that expanding demand for AI servers in the second half of the year would lead to a substantial improvement in supply and demand. "The third quarter is a critical inflection point," he explained, adding, "Apple’s production plans are stronger than expected, and the mass production of NVIDIA’s Vera Rubin will significantly increase MLCC adoption."
Silicon capacitors were also cited as an additional growth driver. Analyst Park stated, “Orders for silicon capacitors indicate the potential for long-term supply agreements (LTAs) that guarantee long-term demand visibility,” adding, “Profit estimates could be raised again depending on whether additional orders are secured.”
He also touched on the FC-BGA business. “Movements by customers to secure supply capacity for FC-BGA are intensifying,” he noted, adding, “With utilization rates nearing 100%, there is a high likelihood of stronger-than-expected price hikes.”
iM Securities projected Samsung Electro-Mechanics’ operating profit for next year and 2028 at 3.3 trillion won and 4.3 trillion won, respectively. Analyst Park emphasized, “It is necessary to focus on the potential for further upward revisions to profit estimates rather than short-term stock price volatility.”