[Click eStock] "Samyoung Electronics, Net Cash 285.3 Billion Won... Exceeds Market Cap"

On the 23rd, LS Securities analyzed that Samyoung Electronics is significantly undervalued compared to its asset value, as its net cash of 285.3 billion KRW exceeds its market capitalization.

Jung Hong-sik, a researcher at LS Securities, stated in a report on the same day, “Samyoung Electronics holds net cash of 285.3 billion KRW,” and “since this exceeds the market capitalization, it is significantly undervalued relative to its asset value.”

Researcher Jung added, “Samyoung Electronics’ interest income (non-operating income) from its large net cash in the first quarter of this year was 2.4 billion KRW, which amounts to about 9.6 billion KRW annually, making its pre-tax profit higher than its operating profit,” and “it is expected to be used as funds for hybrid capacitor investments and M&A in the future.”

Samyoung Electronics plans to start producing hybrid capacitors in 2025. Hybrid capacitors are gaining demand for applications in high-capacity, low-heat, and compact products based on the advantages of electrolytic capacitors’ stability and reliability, as well as solid capacitors’ thermal management (low heat generation) and durability.

He explained, “The largest demand sector for hybrid capacitors is electric vehicles (including hybrid cars), and once the company’s hybrid capacitors enter full-scale mass production after 2025, they will be supplied to domestic automobile company H,” adding, “this replaces the previous reliance on imports for automotive hybrid capacitors with domestic production.”

He continued, “Starting with two production lines in 2025, two additional lines will be added each in 2026 and 2027, with a total of seven lines operating by 2028,” and forecasted, “considering that the profitability of hybrid capacitors is higher than that of existing home appliance capacitors, there is a high possibility of strong profit growth for Samyoung Electronics from 2025 to 2028.”