[Featured Stock] Samsung Electro-Mechanics Jumps Over 10% on Visible MLCC Price Hikes

Samsung Electro-Mechanics is on an upward trend as price hikes for multilayer ceramic capacitors (MLCCs) are becoming more visible.

As of 9:20 a.m. on the 23rd, Samsung Electro-Mechanics was trading at 416,000 won, up 39,000 won (10.34%) from the previous trading day.

Korea Investment & Securities maintained its "Buy" investment opinion on Samsung Electro-Mechanics in a report released that day and raised its target price from 340,000 won to 440,000 won.

In the report, researchers Park Sanghyun and Lee Jaesung stated, "This year, the MLCC utilization rate will remain stable in the mid-to-high 90% range throughout the year," adding, "Considering the limited additional production capacity, it is reasonable to view price, rather than volume, as the key driver of upside for this year's component sales."

They noted that Murata Manufacturing, the world's No. 1 company in the MLCC field, recently hinted at the possibility of raising prices for high-spec MLCCs, and said, "In the current oligopolistic market structure, Murata's unit price hikes will naturally lead to a corresponding rise in Samsung Electro-Mechanics' selling prices."