J.P. Morgan International FTM 21 May 26 CSG; European platforms and wealth managers; Samsung Electro-Mechanics; Bharat Electronics Ltd; Techtronic Industries (0669); Silergy Corp; Tokio Marine Holdings (8766) and More

Research evidence excerpt

J.P. Morgan International FTM 21 May 26 CSG; European platforms and wealth managers; Samsung Electro-Mechanics; Bharat Electronics Ltd; Techtronic Industries (0669); Silergy Corp; Tokio Marine Holdings (8766) and More

age, which we think are not well appreciated by the market and not reflected in relative

valuations. Higher rates may lead to positive earnings revisions, although this alone might not be sufficient to drive share price

performance, which instead, in our view, will depend more on the ability to sustain momentum in customer growth and flows.

We continue to favour the Italian asset gathers Fineco and Mediolanum, as they benefit from a combination of strong growth

and elevated revenues per client, with Aberdeen’s interactive investors also being well positioned, in our view.

Samsung Electro-Mechanics (Jay Kwon) (009150 KS, OW, PT W1,450,000), South Korea

Silicon capacitor paves new business model on top of stronger MLCC/Substrate cycle; PT hike to

W1.45mn

SEMCO’s key operations (MLCC/Substrate) are seeing stronger traction upon robust orders (both GPU/CPU), pricing (mix

improvement and like-for-like increase in long-tail customers) and reported new business initiatives (silicon capacitor, fabless

business model) today. These trends signal a dramatic earnings growth trajectory and indicate healthy customer diversification.

With significant FCF and ROE improvement, we believe SEMCO is in a multiple expansion stage and raise our PT to W1.45mn

following 5-25% FY26E-28E EPS upward revision (JPMe: 11-51% ahead of consensus) and higher valuation multiple. SEMCO

remains a preferred buy idea (SEMCO’s shares +226% YTD vs. Kospi +57%) from Korea Tech H/W coverage and we