[Click eStock] "Samsung Electro-Mechanics to Supply Core Components for the Robot Era... Target Price Raised"

On January 2, NH Investment & Securities maintained its "Buy" investment rating on Samsung Electro-Mechanics, raising its target price to 3.1 million KRW. The current share price stands at 2.55 million KRW. The firm stated, "Based on the business capabilities accumulated in the optical communication sector, Samsung Electro-Mechanics is emerging as a hidden key player supplying core components in the era of physical AI (artificial intelligence)."

On this day, Hwang Jihyun, a researcher at NH Investment & Securities, commented, "All business divisions of Samsung Electro-Mechanics, including multilayer ceramic capacitors (MLCC) and package substrates, are expected to benefit structurally from the spread of AI."

Recently, Samsung Electro-Mechanics made its first step toward expanding its robot components business by investing in Alba Industries, which possesses ultra-small motor technology for robots. The company has expanded its new portfolio to cover key components required for robots.

Researcher Hwang estimated, "Each humanoid robot is expected to require about 10,000 MLCCs and at least five camera modules. Existing core components are also expected to benefit." She added, "To meet the rising demand for humanoid camera modules from North American clients, the company is also resuming construction of its camera factory in Mexico."

The company is expected to exceed market expectations in its fourth-quarter results last year, with sales of 2.8421 trillion KRW (up 14.0% year-on-year) and operating profit of 232.5 billion KRW (up 102.2%, with an operating margin of 8.2%), surpassing the market average.

Researcher Hwang stated, "The favorable exchange rate trend continues, and the seasonal off-peak effect has weakened due to the increased proportion of non-IT sales."