[Feature Stock] Amotech Jumps Over 11% Early in the Session...Strength on AI MLCC Comments

Amotech is showing strong gains, rising more than 11% in early trading. There is also an assessment that it is an undervalued stock among artificial intelligence (AI)-related shares.

As of 9:13 a.m. on the 20th, Amotech is trading at 11,760 won, up 1,230 won (11.6%) from the previous day.

Amotech produces ceramic chip components (EMC) for IT and automotive electronics, antenna components, and BLDC motors. In particular, its MLCC business has long suffered from the burden of new investments and sluggish earnings, but operating profit is expected to turn to the black in 2025, backed by increased supply of MLCCs for automotive electronics.

Oh Hyunjin, a researcher at Kiwoom Securities, said, "Starting this year, sales of MLCCs for AI servers will begin in earnest, putting the company into a phase of top-line growth and improved profitability."

The MLCCs for AI servers are understood to have received product approval from major North American fabless customers, he explained. Accordingly, he estimated that MLCC sales will grow to 25.0 billion won in 2025, 55.0 billion won in 2026, and 94.8 billion won in 2027.

The company’s 2025 results are projected to be sales of 245.2 billion won (up 7% year-on-year) and operating profit of 6.1 billion won (a turnaround to profit).

Researcher Oh said, "The speed of delivering results in newly entered industries could be a risk factor," but added, "It is worth noting that we have reflected conservative estimates, and that based on these, the current share price is in an undervalued phase at 6.4 times PER on a 2027 basis."