[Special Stock] Samyoung Electronics' PBR Lower Than Insurance Sector... Highlighted Cash and Prime Assets Exceeding Market Cap

Cash-rich Samyoung Electronics is showing strength. The government’s announcement of the introduction of a 'Corporate Value-Up Program' aimed at enhancing the value of companies with low Price-to-Book Ratios (PBR) appears to be influencing the stock price.

As of 11:47 AM on the 1st, Samyoung Electronics is trading at 10,800 KRW, up 8.98% from the previous day.

Samyoung Electronics’ PBR remains at around 0.3 to 0.4 times. This is similar to the banking sector’s PBR of 0.3, life insurance at 0.2, non-life insurance at 0.4, and securities at 0.4. Expectations are rising for a revaluation of Samyoung Electronics’ corporate value due to its rapid growth prospects by domestic production of hybrid capacitors, which were previously entirely imported from Japan. The largest shareholder and CEO Byun Dong-jun hold a combined stake of 48.1%.

Jung Hong-sik, a researcher at Ebest Investment & Securities, explained, "As of the third quarter last year, the company holds net cash of 290.3 billion KRW," adding, "This exceeds the market capitalization."

He continued, "The company plans to produce hybrid capacitors used in electric vehicles," and added, "Since hybrid capacitors were entirely dependent on imports from Japan, domestic production by Samyoung Electronics is highly significant."

He analyzed, "According to the company’s plan, after the initial production line is set up in 2025, continuous line expansions will proceed for 2 to 3 years," and "By around 2028, it is expected to cover about 80% of the hybrid capacitor demand from domestic original equipment manufacturers (OEMs)."

Heo Min-ho, a researcher at the Korea IR Association, stated, "The book value of land is 65.5 billion KRW," and analyzed, "Even without reflecting business value and simply calculating net cash and land book value, the liquidation value is at least 325.5 billion KRW."

He forecasted, "The sales proportion for automotive electronic components based on the domestic headquarters will expand from 12% in 2022 to 18% in 2023, 21% in 2024, and 25% in 2025," adding, "This will drive performance improvement."

He added, "Production capacity will gradually expand until 2027," and noted, "Hybrid capacitors are high-priced products nearly twice as expensive as existing products."