Samsung Electro-Mechanics Target Price Raised to 2.8 Million Won: "No. 1 Premium" [Click e-Stock]

Hyundai Motor Securities Raises Target Price for Samsung Electro-Mechanics

On June 24, Hyundai Motor Securities maintained its 'BUY' investment opinion on Samsung Electro-Mechanics, stating that the company's technological superiority over global competitors and visible achievements in new businesses are becoming increasingly apparent. The target share price was raised by 21.7%, from the previous 2.3 million won to 2.8 million won.

Kim Jongbae, a researcher at Hyundai Motor Securities, commented, "Samsung Electro-Mechanics deserves a premium compared to global competitors in its FC-BGA (Flip Chip Ball Grid Array) and MLCC (Multi-Layer Ceramic Capacitor) businesses." As grounds for this, he cited ▲the rapid progress in next-generation substrate development and ▲the first-mover advantage in the silicon capacitor (Si Capacitor) market.

According to Hyundai Motor Securities, Samsung Electro-Mechanics is demonstrating the most realistic and advanced roadmap in next-generation substrate technologies, such as embedded PCB (Embedded PCB) and glass core substrate (Glass Core Substrate).

While global competitor Ibiden expects to begin generating embedded PCB sales between the end of 2027 and 2028, Samsung Electro-Mechanics has already started generating some sales for global customers, with full-scale expansion anticipated from the second half of this year. In particular, significant synergy is expected with the silicon capacitor business, where the company has secured large-scale orders.

For glass core substrates, while competitors are targeting mass production by 2030 due to technical barriers, Samsung Electro-Mechanics is already moving quickly, having conducted concrete discussions with partners to target pilot production in 2025 and full-scale mass production in 2027. In addition, in the existing FC-BGA segment, the company plans to rapidly expand its production capacity by operating new plant lines starting in 2026.

The company's exclusive competitiveness in the new silicon capacitor business has also attracted attention. Samsung Electro-Mechanics has secured large-scale orders from global clients and was the first among competitors to establish supply references. Researcher Kim stated, "Silicon capacitors serve a different function from traditional MLCCs, so both markets are expected to grow together without cannibalization." He added, "Along with the traditional momentum of MLCC shortages (supply shortage), the company is expected to continue its dominant position by achieving meaningful results in new businesses as well."

Researcher Kim also noted, "The target share price of 2.8 million won was calculated by applying a target multiple of 74.5 times to the expected 2027 earnings per share (EPS) of 37,259 won, reflecting a 10% premium over Ibiden."

This content was produced with the assistance of AI translation services.