[Edaily Reporter kyoungeun kim ] Hana Securities has maintained its “Buy” rating on SamsungElectroMechanics(009150)and significantly raised its target price from 1.7 million won to 3 million won. This outlook is based on the expectation that the company’s steep earnings growth will continue through 2028 as supply shortages of multilayer ceramic capacitors (MLCCs) and flip-chip ball grid array (FCBGA) components intensify, driven primarily by demand from artificial intelligence (AI) data centers.

Kim Min-kyung, an analyst at Hana Securities, stated in a report on the 1st, “The expansion of production capacity (Capa) for AI servers by global MLCC manufacturers is accelerating the overall reduction in global production capacity, and the benefits from growing demand for ultra-small, high-capacity MLCCs for data centers are expected to be concentrated among top-tier global companies.”
The stock has upside potential of 37% compared to the previous day’s closing price (2,184,000 won).
SamsungElectroMechanics announced a single MLCC sales and supply contract worth approximately 450 billion won the previous day. The contract is understood to involve the supply of ultra-small, high-capacity MLCCs for AI data centers for the year 2027.
Analyst Kim said, “The fact that a large-scale, long-term contract for the 2027 supply volume has been signed at this point suggests that, amid surging demand for high-value-added MLCCs for AI servers, concerns are growing regarding customers’ medium- to long-term MLCC supply and demand, and that MLCCs have emerged as a core component within AI servers.”
He added, “Due to the high technical difficulty involved, the market for ultra-compact, high-capacity MLCCs used in AI servers is currently dominated by SamsungElectroMechanics and Murata, and entry by latecomers is likely to remain limited in the future.” “As the product mix improves through an increased share of high-margin MLCC sales, and global MLCC production capacity is rapidly shrinking due to latecomers expanding their supply of high-voltage MLCCs, the favorable market environment is expected to persist for the long term,” he predicted.
FCBGA is also expected to remain in a prolonged phase of structural growth. Analyst Kim explained, “While demand for accelerators and server central processing units (CPUs) for AI data centers remains robust, the trend toward larger semiconductor die sizes is leading to larger FCBGA packages and higher-layer counts, thereby exacerbating production capacity losses (Capa Loss).”
He added, “Despite large-scale capacity expansions by global PCB manufacturers, the actual increase in supply is likely to fall short of expectations, and it appears that top-tier PCB manufacturers are selectively accepting advance payments from customers.” He continued, “Due to the tight supply-demand environment, prices for FCBGA used in PCs and automotive applications—in addition to servers—are also rising rapidly, and we expect the steep trend of profitability improvement to continue.”