[Edaily Reporter Kwon Oh Seok ] NH INVESTMENT & SECURITIES announced on the 1st that it is maintaining its “Buy” rating on SamsungElectroMechanics(009150)and raising its target price from 1.7 million won to 3 million won.

Hwang Ji-hyun, an analyst at NH INVESTMENT & SECURITIES, explained, “We believe the fourth MLCC cycle is gaining momentum, so we have raised our base assumptions for MLCC price increases to +20% (year-over-year) in 2027 and +30% in 2028, and accordingly, we have raised our earnings estimates.” She added, “It is highly likely that the fourth MLCC cycle will be stronger and longer-lasting than previous cycles. “On the demand side, specification upgrades for AI accelerators are strongly driving an increase in MLCC loading,” she explained.
He continued, “On the supply side, however, CAPEX (capital expenditures) has been managed conservatively over the past four years, resulting in limited spare capacity.” He elaborated, “This is compounded by the capacity-eroding effects of the shift toward higher-capacity and ultra-compact designs. Furthermore, as demand expands primarily for high-margin products such as AI servers, networks, and automotive electronics, we expect the positive impact of product mix improvement to be stronger than in any previous cycle.”
Referring to the company’s announcement the previous day (June 30) regarding a supply contract for MLCCs with a global Big Tech firm, Analyst Hwang noted, “Deliveries are scheduled for 2027, and the contract value is approximately 4500억원. It is unusual for a Big Tech firm to publicly announce a large-scale direct contract, suggesting that concerns over an MLCC shortage for AI servers are becoming a reality.”
He added, “We believe there is a high likelihood of additional orders from customers facing similar supply-demand pressures in the future, as well as potential price increases for general-purpose products,” and projected second-quarter revenue of 3.248 trillion won (+16.6%) and operating profit of 400.1 billion won (+87.8%). He added, “We expect operating profit to exceed the consensus estimate of 382 billion won, driven primarily by favorable exchange rates and an improved product mix.”