[Edaily Reporter Kim Hyung-il ] Meritz Securities forecasts that SamwhaCapacitor(001820)will continue to see earnings growth due to improving market conditions for multilayer ceramic capacitors (MLCCs) driven by expanding demand for artificial intelligence (AI).

On the 21st, Yang Seung-soo, an analyst at Meritz Securities, stated, “Second-quarter revenue reached 82.9 billion won, a 5.2% increase year-over-year, while operating profit rose 55.1% to 8.6 billion won,” adding, “The company has recovered a double-digit operating profit margin for the first time in eight quarters.”

The improvement in profits, which outpaced revenue growth, was driven by revenue growth and a recovery in profitability in the MLCC segment. MLCCs are experiencing simultaneous revenue growth and improved profitability amid a favorable pricing environment resulting from price hikes by Tier-1 suppliers, coupled with the company’s own price increases for certain product lines. In particular, the company is reportedly expanding its market share among customers and increasing the proportion of high-value-added products in the automotive and industrial sectors.

Researcher Yang explained, “The MLCC sector is expected to enter a new upswing as the trickle-down effects of expanding AI demand gradually spread,” adding, “Tier-1 manufacturers such asSamsungElectroMechanics(009150), and Murata are reallocating production capacity toward AI applications to meet demand for high-value-added MLCCs for AI servers, while simultaneously pushing for price increases on general-purpose MLCCs.”

He continued, “As supply capacity for general-purpose products shrinks, opportunities for Tier-2 manufacturers to increase volume and raise prices will expand simultaneously,” adding, “We expect a structural trickle-down effect—resulting from the shift in production capacity toward AI, reduced supply of general-purpose products, price increases, and expanded market share for Tier-2 manufacturers—to intensify.”

Film capacitors (FCs) were also identified as a growth driver. FCs are key components in power conversion devices for high-power infrastructure, such as data centers and semiconductor fabs, where they stabilize voltage and eliminate high-frequency noise. The report explained that related orders are gradually increasing, driven by expanded investment in AI data centers and the expansion of semiconductor production capacity by domestic memory manufacturers.

In particular, the firm viewed the expanding joint entry into overseas data center markets with domestic transformer clients as a positive development. Since FCs are core components of SSTs (Solid State Transformers)—which are power semiconductor-based transformers—the firm projected that orders would begin in earnest this year as the related market matures, with their contribution to revenue set to expand starting in 2027.

Analyst Yang stated, “Since FCs are understood to be more profitable than MLCCs, an increase in their share of revenue will positively contribute to the company’s overall profitability,” and predicted, “In 2027, revenue will reach 406.9 billion won and operating profit will reach 60.1 billion won, representing year-over-year increases of 24.3% and 102%, respectively.”

He continued, “Amid sustained revenue growth and profitability improvements driven by the MLCC upswing, the growth trajectory is expected to become even steeper starting in 2027 as revenue contributions from film capacitors gain momentum,” adding, “We anticipate a repeat of the high stock price elasticity observed during past MLCC upswing cycles.”