Samsung Electro-Mechanics Down 40% but BUY-Rated at 3M Won Target as MLCC Supply Shortage Persists

According to Hana Securities, Samsung Electro-Mechanics stock has fallen more than 40% from recent highs, but the brokerage maintains a BUY rating with a 3 million won price target. The outlook is supported by expectations that multilayer ceramic capacitor (MLCC) and flip chip ball grid array (FCBGA) substrate supply constraints will extend. Hana Securities analyst Kim Min-kyung noted that major MLCC suppliers are not expanding capacity significantly despite utilization rates for Murata and Samsung Electro-Mechanics exceeding 90% for four consecutive quarters. The upcoming July 30 earnings announcement and commentary from major tech companies and competitors could serve as catalysts for a stock rebound. For 2026, Hana projects revenue of 13.43 trillion won and operating profit of 1.71 trillion won; for 2027, the brokerage expects revenue of 16.08 trillion won and operating profit of 3.39 trillion won, representing a 97.9% year-over-year increase, with operating margin improving to 21.1% from 12.8%.
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