[Click eStock] "Samsung Electro-Mechanics, Growth Focused on High Value-Added... 'Upward Trend' Expected"

LS Securities on the 10th forecasted that Samsung Electro-Mechanics will continue to show an upward trend due to sustained performance growth centered on high value-added products. They maintained a 'Buy' investment rating and a target price of 200,000 KRW.

Kwangsoo Kim, a researcher at LS Securities, explained, "Despite the slowdown in the electric vehicle market growth, the performance of multilayer ceramic capacitors (MLCC) for automotive electronics is sailing smoothly," adding, "This is because the installation of electrification-related products in internal combustion engine vehicles, including hybrids, is continuously expanding."

Furthermore, Researcher Kim projected that the performance growth trend will continue following the growth of the artificial intelligence (AI) industry. He stated, "The AI industry has entered a transition phase from business-to-business (B2B) to business-to-consumer (B2C)," and added, "In the case of B2B, demand for high value-added MLCCs for servers and power devices related to data expansion is increasing, while in B2C, overall product specification upgrades such as high-performance central processing units (CPUs) and graphics cards related to on-device AI will expand." He further noted, "This will lead to increased demand for high value-added ultra-high-density substrates," and added, "Focusing on high value-added products, the company will gradually but undoubtedly show an upward trend in influence."