Samsung Electro-Mechanics (009150), a leading Korean semiconductor materials, components, and equipment maker, joined the ranks of "emperor stocks" — shares trading above 1 million won — after its price breached the threshold intraday.
The stock traded at 1.08 million won as of 11:09 a.m. Tuesday, up 6.26% from the previous session, according to the Korea Exchange. It was the first time shares of Samsung Electro-Mechanics had surpassed 1 million won during trading. The previous intraday high was 995,000 won, with a closing high of 958,000 won, both recorded Monday.
Samsung Electro-Mechanics shares, which traded at 270,000 won at the beginning of the year, have risen 3.7-fold in about five months. The addition brings the number of domestic emperor stocks to 11 from 10, joining Hyosung Heavy Industries (298040), SK hynix (000660), Doosan (000150), Korea Zinc (010130), Samsung Biologics (207940), Samyang Foods (003230), Hanwha Aerospace (012450), HD Hyundai Electric (267260), Taekwang Industrial (003240), and SK Square (402340).
As recently as April last year, Samsung Biologics was the sole emperor stock. That count expanded to four at the start of this year with the additions of Hyosung Heavy Industries, Korea Zinc, and Samyang Foods. The number grew sharply thereafter as the benchmark index broke past the 6,000 mark.
Brokerages expect Samsung Electro-Mechanics shares to climb as high as 1.3 million won, driven by growth in the artificial intelligence (AI) and automotive electronics markets. Mirae Asset Securities (006800) set that target price in a report dated the 6th of this month, noting that "favorable pricing trends for multilayer ceramic capacitors (MLCC) and ongoing negotiations with customers for flip-chip ball grid arrays (FC-BGA) leave room for further upside."
Samsung Electro-Mechanics posted first-quarter revenue of 3.21 trillion won and operating profit of 280.6 billion won, up 17.2% and 39.9%, respectively, from a year earlier. The results beat market expectations despite the inclusion of approximately 70 billion won in one-off costs such as severance payments. It marked the first time quarterly revenue had exceeded 3 trillion won since the company's founding.
