As of 1:40 PM on the Korea Exchange on May 22, Samwha Capacitor's stock was trading at 102,000 won, up 23,500 won (29.94%) from the previous trading day. This marks a new 52-week high, representing a 155% increase from its 52-week low of 40,000 won recorded on March 4 of last year.
The company has seen a sharp rise in its stock price, including a 23% jump on May 20. Analysts suggest that investor sentiment is increasingly focused on Samwha Capacitor as a beneficiary of the improving MLCC market and the growing demand related to AI data centers.
Notably, Samsung Electro-Mechanics shares surpassed 1.3 million won for the first time, soaring nearly 420% since the beginning of the year. This has led to increased buying interest in Samwha Capacitor, which has also risen approximately 250% during the same period.
Market analysts are paying close attention to the potential for Samwha Capacitor's MLCC performance to improve due to the expansion of investments in AI data centers. Lim Eun-young, a researcher at Samsung Securities, noted, "In the first quarter, MLCC sales increased by 24.2% year-on-year to 38.7 billion won, accounting for 52% of total sales of 72.8 billion won. The supply of MLCCs for power infrastructure and devices such as UPS, PDU, and PSU needed for data center operations is expanding."
She added, "With leading MLCC manufacturers like Murata and Samsung Electro-Mechanics forecasting price increases due to supply shortages, Samwha Capacitor is likely to benefit from a trickle-down effect starting in the second quarter. If the effects of the ongoing expansion at the Yongin plant are factored in, production could increase by 40-50%."
There are also expectations that the market conditions reminiscent of the 2018 cloud data center investment boom may reemerge. At that time, Samwha Capacitor recorded an operating profit margin of 29.6% due to an increase in the proportion of MLCC sales, with its stock price reaching an all-time high of 109,500 won.
Additionally, growth prospects for DC link capacitors used in electric vehicles are positively influencing the stock price. DC link capacitors are essential components that stabilize voltage fluctuations in electric vehicle inverters. As Hyundai and Kia expand their hybrid and electric vehicle lineups and the European electric vehicle market continues to grow, demand for these components is expected to rise.
* This article has been translated by AI.
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