Samsung Electro-Mechanics Target Price Raised from 360,000 to 460,000 Won on MLCC Upside; LIG Nex1 Benefits from Proven 96% Cheongung-II Interception Rate, Target Price Up 50% [Stocktopia]

[The Financial News] On the morning of March 10, here is a summary of key reports from major securities firms.
Samsung Electro-Mechanics is expected to post a 53.9% year-on-year surge in operating profit this year, backed by structural expansion in demand for Multilayer Ceramic Capacitors (MLCC) as power consumption of AI chips soars. Defense contractor LIG Nex1 saw its target price raised by 50%, driven by expectations of additional orders from the United Arab Emirates (UAE) after the Cheongung-II medium-range surface-to-air missile system demonstrated a 96% interception success rate. Compound semiconductor specialist RFHIC is drawing attention as a potential "tenbagger" stock, having delivered repeated earnings surprises and being seen as capable of growing tenfold over the long term.
◆Samsung Electro-Mechanics (009150)― NH Investment & Securities / Analyst Hwang Ji-hyun
- Target price: 460,000 won (raised from 360,000 won) | Previous closing price: 382,000 won
- Investment opinion: Buy
NH Investment & Securities projects that Samsung Electro-Mechanics will achieve operating profit of 1.353 trillion won this year, up 53.9% from a year earlier. The firm analyzed that the company has entered a phase of structural expansion in demand for its core component, MLCC, as power consumption of AI chips increases, and accordingly raised its target price from 360,000 to 460,000 won. Analyst Hwang Ji-hyun noted that industry leader Murata Manufacturing has mentioned the possibility of price hikes, which has improved visibility for MLCC price increases, and stated that the recent share price pullback should be viewed as a buying opportunity.※ Multilayer Ceramic Capacitor (MLCC)MLCCs are components that stabilize electrical flow inside electronic devices, and a single smartphone contains hundreds to thousands of them. AI servers consume far more power than conventional servers, so they require a much larger number of MLCCs.
◆LIG Nex1 (079550)― Kiwoom Securities / Analyst Lee Han-gyeol
- Target price: 1,050,000 won (raised from 700,000 won) | Previous closing price: 796,000 won
- Investment opinion: Buy
Kiwoom Securities raised its target price for LIG Nex1 from 700,000 to 1,050,000 won, a 50% increase, citing the fact that the Cheongung-II medium-range surface-to-air missile system achieved a 96% interception success rate in the Middle East conflict, and that the UAE has requested early delivery and additional orders for guided missiles. Analyst Lee Han-gyeol also suggested that the timeline for visible export opportunities of the Long-range Surface-to-Air Missile (L-SAM) system, a long-range surface-to-air missile program that has begun mass production in Korea, could be brought forward, and presented LIG Nex1 as the top pick within the defense sector.※ Cheongung-II medium-range surface-to-air missile systemThis is a medium-range surface-to-air missile defense system developed with domestic technology. It primarily intercepts enemy ballistic missiles and aircraft at lower altitudes of around 15–20 kilometers. In recent real combat during the Middle East conflict, it shot down Iranian ballistic missiles with an impressive 96% success rate, proving world-class performance. Each battery carries a total of 32 guided missiles, and the unit cost per missile is known to be around 1.5 billion won.※ Long-range Surface-to-Air Missile (L-SAM)L-SAM is an upper-tier interception system nicknamed the "Korean THAAD (K-THAAD)." It defends against incoming ballistic missiles at higher altitudes of about 40–60 kilometers, above the engagement envelope of Cheongung-II. The system is being developed under the leadership of the Agency for Defense Development (ADD), with LIG Nex1 and Hanwha Aerospace participating. Once a multi-layer air defense network is established in which L-SAM provides the first line of defense at high altitude and Cheongung-II offers a second layer at lower altitude, Korea will have a near-impregnable defense system comparable to those of the United States or Israel.
◆RFHIC (061730)― Hana Securities / Analyst Kim Hong-sik
- Target price: 100,000 won (raised from 80,000 won) | Previous closing price: 63,200 won
- Investment opinion: Buy
Hana Securities raised its target price for RFHIC from 80,000 to 100,000 won, noting that the company has signed a power amplifier supply contract worth around 50 billion won with defense contractor Raytheon and that its combined annual sales related to Ericsson and Raytheon could exceed 100 billion won. The firm also highlighted the possibility that the stock could become a tenbagger, meaning a tenfold increase in share price. Analyst Kim Hong-sik explained that the full-scale rollout of 5G standalone (SA) networks and the expansion of U.S. and EU sanctions on Chinese equipment are creating new revenue sources. He argued that despite the strong share price rally, the stock is still trading at historically undervalued levels.※ 5G Standalone (SA) modeThis is a network architecture in which both the base stations and the core network—the central system that handles data, authentication, and control—operate entirely on 5G. Most domestic and overseas networks currently use the 5G Non-Standalone (NSA) mode, where 5G base stations are linked to an LTE core network. SA is a more advanced technology beyond NSA. As the Ministry of Science and ICT has mandated the deployment of 5G SA within this year, demand for migration among telecom operators at home and abroad is rising rapidly.

sms@fnnews.com Seong Min-seo Reporter