The stock market is excited by the good news of the Apple car… Samsung Electro-Mechanics issue smiling quietly

The news that Hyundai Motor Group and Apple are working together to make an electric car,’Apple Car’, is heating up the stock market every day. In Yeouido Securities Street, Samsung Electro-Mechanics(193,000 0.00%)It is advice to pay attention to The development of autonomous vehicles is expected to increase the demand for multilayer ceramic capacitors (MLCC). MLCC is Samsung Electro-Mechanics’ core business.

As of 10:31 am on the 12th, Samsung Electro-Mechanics is trading at 192,000 won, down 1,000 won (0.52%) from the previous day in the securities market. In recent years, the stock price of Samsung Electro-Mechanics has soared. It has risen close to 8% this year alone.

It is interpreted that the news of Hyundai Motor’s Apple car collaboration had a positive effect on the stock price. It is known that the amount of MLCC in ECU, which is a semiconductor for vehicles, is far greater than that in smartphones.

According to related industries, about 1,000 MLCCs are used in smartphones, while 3,000 to 8000 MLCCs are used in automobiles. Based on the latest electric vehicles, it is analyzed that around 13,000 units are needed, and 15,000 units are required for the next generation of autonomous vehicles.

According to Samsung Securities, Samsung Electro-Mechanics occupied 23% of the MLCC market at the end of last year, following Japan’s Murata (38%). Of the 23%, 35% are mobile (smart phones) and only 6% are cars. It is analyzed that there is a lot of room for market share increase.

Lee Jong-wook, a researcher at this securities firm, said, “The possibility of increasing demand for MLCCs for automobiles will be highlighted.” “Since ECU parts require high reliability, companies that dominate the market are expected to benefit.”

It is also a good thing that MLCC prices are expected to rise. MLCC is a component called rice in the electronics industry, and is only 0.4mm wide and 0.2mm long, which is the level of hair (0.3mm). Small in size, but expensive. MLCC filled with wine glasses is a high value-added product worth hundreds of millions of dollars. We believe that this year’s MLCC supply-demand imbalance is deepening and prices are likely to increase.

NH Investment & Securities researcher Lee Gyu-ha predicted that “the MLCC supply shortage will intensify due to aggressive smartphone shipments by Chinese companies and strong iPhone sales.” Samsung Electro-Mechanics is also expected to benefit from rising prices.

The earnings outlook is also bright. According to F&Guide, a financial information provider, Samsung Electro-Mechanics’ sales estimate for the fourth quarter of last year is expected to increase by 15.94% from the same period last year to KRW 2.139.9 billion. Operating profit is projected to jump 85.75% over the same period to W257.5bn and net profit to turn to black at W176.4bn.

Stock companies’ target prices are also rising one after another. NH Investment & Securities offered the highest target price of 225,000 won. Samsung Securities (220,000 won) and Daishin Securities (220,000 won) also offered more than 200,000 won.

Song-ryul Lee, reporter of Hankyung.com [email protected]

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