[Click e Stocks] Samsung Electro-Mechanics, a '5G Core Component Supplier'

[Asia Economy Reporter Junho Hwang] Shinhan Financial Investment raised the target price of Samsung Electro-Mechanics from 200,000 KRW to 235,000 KRW on the 19th. This adjustment is based on the expected recovery in shipments from major smartphone manufacturers this year.

In particular, Samsung Electro-Mechanics is expected to become a key vendor for 5th generation mobile communication (5G) smartphones. Samsung Electro-Mechanics has secured 5G product lines including MLCCs for 5G smartphones, SiP packaging substrates used in communication modules and antenna modules, FPCB cables, and ultra-high frequency band antennas (mmWave AiP) modules. The three pillars of Samsung Electro-Mechanics' growth are MLCC, 5G, and automotive electronics.

Samsung Electro-Mechanics' operating profit for the fourth quarter of last year was estimated at 261.1 billion KRW. This estimate is based on the analysis that demand for components (MLCC, RFPCB, SiP, AiP) increased due to the seasonal peak in the North American smartphone market.