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Aerial View of Samsung Electro-Mechanics Suwon Plant (Photo: Samsung Electro-Mechanics) |
[Alpha Biz= Reporter Kim Sangjin] Shinhan Investment Corp. announced on the 30th that while the long-term growth direction for Samsung Electro-Mechanics remains valid, there is a need to confirm the volatility of its performance, leading to a reduction in the target price from 210,000 KRW to 190,000 KRW. The investment rating of 'Buy' was maintained.
Shinhan noted that the operating profit for Q3 fell short of consensus expectations by 5% but aligned with its own estimates. It added that sales in optical communications and packaging slightly exceeded projections, while components fell short.
Earlier, Samsung Electro-Mechanics reported a 19.5% increase in consolidated operating profit for Q3 to 224.9 billion KRW compared to the same period last year. Revenue rose by 11.0% to 2.6153 trillion KRW, while net income decreased by 24.7% to 124.2 billion KRW.
The company attributed its performance improvements to increased supply of high-value products such as multi-layer ceramic capacitors (MLCC) for AI, automotive camera modules, and semiconductor package substrates for servers, driven by market expansion in AI, automotive, and server sectors.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
