Daishin Securities announced on June 10 that it has reevaluated Samsung Electro-Mechanics as a major beneficiary of the expanding artificial intelligence (AI) server and data center market, raising its target price from 920,000 won to 2.4 million won. The firm maintained its "buy" rating on the stock.
Park Kang-ho, a researcher at Daishin Securities, stated, "With the securing of a 1.6 trillion won order for silicon capacitors, we have added a new growth driver for after 2027," and noted that earnings per share (EPS) for 2027 has been adjusted upward by 5.8% due to this order.
He added, "With the expansion of sales for FC-BGA aimed at AI servers and data centers, we expect the utilization rate to reach nearly 100% by the end of 2026," and mentioned that additional investment plans targeting 2028 are likely to become visible in the third quarter of this year.
Park explained that "silicon capacitors are a low-investment, high-profit business," and with reliability established through applications in AI servers, the company is expected to secure additional customers and expand orders.
He also highlighted that "the increasing demand for AI servers and industrial applications suggests a strong possibility of price hikes for multilayer ceramic capacitors (MLCCs)," indicating that ongoing supply shortages and rising demand could provide further opportunities for profit increases.
Park anticipates visible achievements in the fields of robotics and humanoids, predicting that the increased adoption of FC-BGA and MLCCs will align with the growth of the robotics market, establishing a new growth axis.
* This article has been translated by AI.
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