Amotech's MLCC Growth Drives Stock Price to Double in Four Months

Stock Price Up 121.7% This Year
Operating Profit Expected to Turn Significantly Positive

Amotech's stock price has been steadily rising, driven by expectations of improved earnings. The increase in multilayer ceramic capacitor (MLCC) sales has been a key factor in this performance.

According to the financial investment industry on April 21, Amotech's stock price has risen by 121.7% so far this year. After closing at 3,735 won at the end of last year, the price jumped to 8,280 won in just four months. Even considering that the KOSDAQ index rose 5.8% during the same period, Amotech's market outperformance reached 115.9 percentage points.

Amotech manufactures ceramic chip components, antenna components, and brushless direct current (BLDC) motors. The company has also entered the MLCC business as a new venture. MLCCs act as a "dam" in electronic circuits, ensuring a stable flow of current and eliminating unnecessary noise generated by current flow. They are essential components in a wide range of IT products, including smartphones and home appliances. Recently, as 5G communications, electric vehicles, and autonomous driving technologies have advanced, the application of MLCCs has expanded into the automotive electronics and telecommunications sectors.

In the second half of last year, Amotech obtained approval to supply MLCCs to China's largest electric vehicle (EV) manufacturer and began mass production in December 2024. Profitability is expected to improve as yield rates stabilize. Ko Euiyoung, a researcher at iM Securities, stated, "We estimate that MLCC sales this year will increase by 150% to 200% year-on-year, reaching between 25 billion and 30 billion won," and added, "We expect Amotech's annual operating profit to turn positive."

IBK Investment & Securities estimated that Amotech achieved sales of 81.2 billion won in the first quarter of this year, a 42.1% increase compared to the fourth quarter of last year. While quarterly MLCC sales did not exceed 3 billion won last year, they are estimated to have risen to 7 billion won in the first quarter of this year. The company is believed to have returned to operating profitability in the first quarter. Kim Woonho, a researcher at IBK Investment & Securities, analyzed, "Amotech has improved its cost structure, and previously sluggish MLCC sales have recovered to normal levels," adding, "The company has entered a phase where it can secure profitability."

Researcher Kim projected that Amotech will record sales of 303 billion won and operating profit of 14 billion won this year. He expects the company to achieve a dramatic turnaround from last year's operating loss of 24 billion won to a significant profit.