Samsung Electro-Mechanics Silicon capacitor paves new business model on top of stronger MLCC/Substrate cycle; PT hike to W1.45mn

Research evidence excerpt

Samsung Electro-Mechanics Silicon capacitor paves new business model on top of stronger MLCC/Substrate cycle; PT hike to W1.45mn

J P M O R G A N Asia Pacific Equity Research

20 May 2026

Samsung Electro-Mechanics Overweight

009150.KS, 009150 KS

Silicon capacitor paves new business model on top of Price (20 May 26):W1,069,000

stronger MLCC/Substrate cycle; PT hike to W1.45mn ▲Price Target (Jun-27):W1,450,000 Prior (Jun-27):W980,000

SEMCO’s key operations (MLCC/Substrate) are seeing stronger traction upon

robust orders (both GPU/CPU), pricing (mix improvement and like-for-like Technology - Semiconductors

increase in long-tail customers) and reported new business initiatives (silicon Jay Kwon AC

capacitor, fabless business model) today. These trends signal a dramatic earnings (82-2) 758-5725

growth trajectory and indicate healthy customer diversification. With significant jay.h.kwon@jpmorgan.com

FCF and ROE improvement, we believe SEMCO is in a multiple expansion stage Sangsik Lee

and raise our PT to W1.45mn following 5-25% FY26E-28E EPS upward revision (82-2) 758 5146

sangsik.lee@jpmorgan.com

(JPMe: 11-51% ahead of consensus) and higher valuation multiple. SEMCO J.P. Morgan Securities (Far East) Limited, Seoul

remains a preferred buy idea (SEMCO’s shares +226% YTD vs. Kospi +57%) Branch

from Korea Tech H/W coverage and we recommend investors accumulate.

• Entering the silicon capacitor business with large volume mass Key Changes (FYE Dec)

production: US$1+bn revenue opportunity ahead. Silicon capacitors are Prev Cur Δ

passive electronic components manufactured on silicon wafers offering Adj. EPS - 26E (W) 18,102 18,934 4.6%

Adj. EPS - 27E (W) 32,141 39,448 22.7%

superior resistance and inductance performance ideal for space-constrained