Daishin Securities maintained its investment opinion "Buy" and target stock price of 250,000 won on the 20th, saying that the recent drop in stock prices is an opportunity to expand its share price as profitability is expected to improve until next year.
Daishin Securities expects Samsung Electro-Mechanics'third-quarter operating profit to be 441.3 billion won. This is higher than expected.
"The operating profit ratio of the MLCC business has increased compared to the second quarter due to the expansion of the mix effect of Multi-layer Ceramic Condenser (MLCC)," Daishin Securities said. "This is because demand for employment MLCC has increased due to the expansion of the global PC market and the expansion of TV.".
Additional profits are expected next year due to investments centered on semiconductor substrates.
"The competitiveness of semiconductor substrates will expand by investing about 1 trillion won in semiconductor substrates (FC BGA-centered)," Daishin Securities said. "We expect it to grow from mobile semiconductor substrates (FC CSP, AiP, Sip) to increase the proportion of 5G smartphones.".
"The growth of the camera module next year is also an expected factor," Daishin Securities said. "We will generate stable profits next year by increasing the proportion of foldable cameras and increasing sales to China.".
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
