Samsung Electro-Mechanics (009150.KS) hit an all-time intraday high on Monday, extending its winning streak to eight consecutive trading sessions. Analysts raised their price targets, reflecting expectations for medium- to long-term growth.
According to the Korea Exchange, Samsung Electro-Mechanics traded at 668,000 won as of 9:30 a.m. on the 17th, up 4.54% from the previous session, marking a new record high. The stock has been on an uptrend for eight consecutive sessions since the 8th.
At the same time, Samsung Electro-Mechanics' market capitalization reached 50.79 trillion won ($36.5 billion), ranking 12th on the KOSPI. This represents a nine-notch jump from 21st place on the 1st, achieved in about two weeks.
The stock's strength is attributed to expectations of an industry recovery. Profitability improvement prospects centered on multi-layer ceramic capacitors (MLCC) and flip-chip ball grid arrays (FC-BGA) are stimulating investor sentiment.
Hana Securities raised its price target for Samsung Electro-Mechanics to 810,000 won from 550,000 won in a report released Monday. "Entry into an MLCC price hike cycle and a mix improvement centered on high-value products driven by deepening FC-BGA supply constraints will drive medium- to long-term earnings growth," said Kim Min-kyung, an analyst at Hana Securities. "The earnings growth phase is highly likely to be prolonged."
The MLCC industry was also assessed as having entered the early stages of recovery. Citing price hike moves by major players, Kim analyzed that the sector has "entered the early stages of a price upcycle." She expected supply and demand to tighten further as demand for high-voltage and high-capacity products expands.
The FC-BGA business is also expected to face deepening supply shortages from the second half of the year. Along with rising demand for AI accelerators and servers, the trend toward larger and more-layered substrates is amplifying real supply constraints, Kim said.
