[Click eStock] "Samyoung Electronics Bets on Leading On-Device AI as a Cash-Rich Company"

ResearchAlum analyzed on the 4th that Samyoung Electronics is expected to benefit from the advent of the on-device artificial intelligence (AI) era.

Founded in 1968, Samyoung Electronics is a manufacturer and seller of capacitors. Capacitors are essential components of electronic circuits, with key functions including ▲electric energy storage ▲voltage stabilization ▲signal filtering ▲energy efficiency improvement. Its clients include Samsung Electronics, LG Electronics, and Hyundai Mobis.

Kim Doyoon, a researcher at ResearchAlum, explained, "As major home appliance companies actively adopt AI technology, the on-device AI era is arriving," adding, "Samsung Electronics will equip its newly developed AI model in the new Galaxy series to be unveiled in January next year."

He continued, "Starting from mobile phones, it will expand to all home appliances such as refrigerators, robot vacuum cleaners, and air conditioners," and added, "LG Electronics will also expand the AI technology applied to washing machines and dryers to all products."

Researcher Kim said, "On-device AI devices require high-performance computing capabilities," and introduced, "This is why stable driving power, such as a high-efficiency power supply system, is essential." He emphasized, "A favorable business environment is expected for Samyoung Electronics," meaning "the demand for home appliance capacitors for voltage stabilization and efficient power management may increase."

According to Global Market Insights, the capacitor market size reached $19.9 billion in 2022. It is expected to grow at an average annual rate of 6.6% from 2023 to 2032.

Researcher Kim explained, "On October 10th, it announced the acquisition of an 8% stake in Japan's Chemicon for 21.9 billion KRW," adding, "Through technological cooperation, it plans to localize hybrid capacitors, which were previously fully imported from Japan." He said, "Hybrid capacitors combine the advantages of existing electrolytic capacitors and polymer capacitors, offering high stability and enabling miniaturization and lightweight design," and "They are products with high demand in automotive electronics and are also installed in robots, drones, and IoT industrial devices."

Researcher Kim forecasted, "It aims to invest up to 50 billion KRW and target an 80% domestic market share," and predicted, "After completing facility investment, the expected annual sales will exceed 60 billion KRW." He analyzed, "It is currently supplying aluminum capacitors for SSDs to the top domestic semiconductor company B," and "The SSD market is expected to grow at an average annual rate of 14.2% from this year to 2028."

He emphasized, "According to the Q3 report, the net cash-type current assets based on consolidated financial statements amount to 290.3 billion KRW, which is 1.68 times the market capitalization of 172.4 billion KRW," and added, "Of the 553.9 billion KRW in assets, liabilities are only 19.4 billion KRW." He continued, "The retained earnings alone reach 372.4 billion KRW, indicating a stable business structure," and said, "The market capitalization being only 59% of the cash-type assets held is an excessive undervaluation."