2Q OP beat; component price rising: Maintain Buy, TP lowered to KRW2,100,000; remains top pick in Korea IT hardware/display sector

Research evidence excerpt

2Q OP beat; component price rising: Maintain Buy, TP lowered to KRW2,100,000; remains top pick in Korea IT hardware/display sector

Global Markets Research

SEMCO 009150.KS 009150 KS 30 July 2026

EQUITY: TECHNOLOGY

Rating2Q OP beat; component price rising Remains Buy

Maintain Buy, TP lowered to KRW2,100,000; remains top pick in Korea IT Target price

Reduced from KRW 2,100,000hardware/display sector KRW 2,500,000

Maintain Buy; TP lowered to KRW2,100,000, implying 138.9% upside Closing30 July 2026price KRW 879,000

We reaffirm our Buy rating and lower TP to KRW2,100,000 (from KRW2,500,000), based on

2027F EPS of KRW46,951 (previously: KRW40,534), multiplied by our target P/E of 45.5x Implied upside +138.9%

(previously P/B of 60.7x). Our target P/E is derived by applying a 30% premium to global MLCC

and substrates companies’ average 2026E consensus P/E of 35.0x. We apply a premium to the Market Cap (USD mn) 45,710.3

global peer average to reflect SEMCO’s higher growth rate driven by its AI exposure. The stock ADT (USD mn) 1,262.4

currently trades at a 2027F P/E of 18.7x.

Relative performance chartThe stock has corrected 61.3% compared with its peak price (vs. KOSPI -38.6% from its

peak) due to deleveraging in global IT hardware stocks. Meanwhile, SEMCO’s

fundamentals have been continuously improving. MLCC and ABF prices are on a strong

uptrend driven by AI. SEMCO remains our top pick in the Korea IT hardware/display sector.

2Q26 OP above consensus by 8.5%; AI demand intact

SEMCO recorded 2Q26 revenue of KRW3.5tn (+7.7% q-q) and operating profit (OP) of

KRW440bn (+57.0% q-q). OP was 8.5% above the consensus estimate of KRW406bn.

The earnings growth was driven by robust increase in demand from AI.

Component (MLCC) division recorded OP of KRW280bn (+70.0% q-q), we estimate. We