Samsung Electro-Mechanics stock gains on AI profit outlook

Published on 09/23/2026 at 06:27 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Samsung Electro-Mechanics stock closed at KRW 1,486,000 on September 22, 2026. Meritz projects third-quarter profit up 152.4 percent year over year.

Samsung Electro, KR7009150004, Illustration mit AI erstellt.

Samsung Electro-Mechanics stock closed at KRW 1,486,000 on the Korea Exchange on September 22, 2026, while Meritz Securities raised its target price from KRW 2,100,000 to KRW 2,200,000 on September 23, 2026. The revision places the broker's target 48.0 percent above the cited market price and shifts attention toward AI-related component demand.

Meritz sees 152.4 percent profit growth

According to ChosunBiz on September 23, 2026, Meritz forecasts third-quarter revenue of KRW 3.82 trillion and operating profit of KRW 657.1 billion. The estimates represent year-over-year increases of 32.2 percent and 152.4 percent, respectively, with projected operating profit 9.3 percent above the KRW 601 billion market estimate.

The projected operating margin is 17.2 percent. Meritz expects the Components Division margin to exceed 20 percent, which would mark its first move above that level in 18 quarters since the first quarter of 2022. The comparison matters because it links the earnings case to product mix and pricing rather than to revenue growth alone.

AI demand broadens beyond accelerators

Edaily reported on September 23, 2026, that Meritz expects demand for high-value-added products to support profitability across multilayer ceramic capacitors and semiconductor package substrates. The broker said the ABF business could achieve an operating margin above 30 percent as supply expands for AI and server CPU applications.

The investment case is also becoming broader. Meritz says AI-related MLCC demand is extending from accelerators to server CPUs, while CPU-related applications account for more than 45 percent of Samsung Electro-Mechanics' ABF sales, including personal-computer use. A long-term supply contract with a North American CPU company was also cited in the September 23 report.

The main counter-factor is the exchange rate. Meritz said earnings expectations were being revised upward despite a recent deterioration in the exchange-rate environment, leaving currency conditions as an immediate variable for reported profitability.

Stock holds at KRW 1,486,000

Samsung Electro-Mechanics closed at KRW 1,486,000 on the Korea Exchange on September 22, 2026. The same price is the reference point for Meritz's KRW 2,200,000 target, a difference of KRW 714,000 or 48.0 percent based on the figures reported on September 23.