"Quarterly Record Results" for LS ELECTRIC, Target Price Raised 77%; Samsung Electro-Mechanics Seen as Poised to Become No. 1 Globally in FC-BGA [Jutopia]

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[The Financial News] Here is a roundup of major securities firm reports for the morning of April 22.
LS ELECTRIC Co., Ltd. is expected to continue expanding its market share and improving its profit margin, supported by rising investment in data centers and North American AI infrastructure. Samsung Electro-Mechanics (SEM) was also assessed as likely to emerge as the global leader in FC-BGA if additional investment is made. Orion Corporation was analyzed as having upside potential, backed by strong overseas earnings and a higher payout ratio.
\r\n\r\n◆LS ELECTRIC Co., Ltd. (010120)— Hana Securities Co., Ltd. / Researcher Yoo Jae-seon
- Target price: KRW 220,000 (raised from KRW 124,000) | Previous close: KRW 184,700
- Investment rating: Buy
Hana Securities Co., Ltd. raised its target price for LS ELECTRIC Co., Ltd., which posted record quarterly results, to KRW 220,000, saying the company is likely to keep expanding its market share and improving profitability as investment in data centers and North American artificial intelligence (AI) infrastructure grows. Researcher Yoo Jae-seon said the company has entered a "power distribution cycle" in which demand for extra-high-voltage transformers and switchgear is surging as big tech firms sharply increase data center spending. He also said the upward trend in sales and earnings is likely to continue throughout the year, as the company is considering further expansion of new plants in Cheongju, Texas and Southeast Asia, in addition to the expansion of its MCM factory in Utah.
\r\n\r\n◆Samsung Electro-Mechanics (SEM) (009150)— Daishin Securities Co., Ltd. / Researcher Park Kang-ho
- Target price: KRW 920,000 (raised from KRW 550,000) | Previous close: KRW 772,000
- Investment rating: Buy
Daishin Securities Co., Ltd. sharply raised its target price for Samsung Electro-Mechanics from KRW 550,000 to KRW 920,000, saying the company would move into a global No. 1 position in FC-BGA if additional investment is made in the high-value-added substrate business. Researcher Park Kang-ho said the company is undergoing a revaluation as AI demand drives FC-BGA prices higher and as the supply shortage for multilayer ceramic capacitors (MLCC) increases the likelihood of price hikes. He added that if MLCC prices are raised in the second half of the year, the company is expected to set a new record for annual earnings for a second consecutive year.※FC-BGA (Flip Chip Ball Grid Array)This is a high-performance semiconductor substrate that connects semiconductor chips to the main board. It is used in high-performance, high-heat chips such as CPUs and GPUs for AI applications, and demand has surged recently amid the AI boom, pushing prices higher.
\r\n\r\n◆Orion Corporation (271560)— NH Investment & Securities / Researcher Joo Young-hoon
- Target price: KRW 170,000 (unchanged) | Previous close: KRW 135,400
- Investment rating: Buy
NH Investment & Securities said Orion's first-quarter results this year are likely to beat market expectations, and that its shareholder-return policy will also support the stock. Researcher Joo Young-hoon noted that sales growth in key overseas markets stood out, with March sales rising 14.1% in China, 20.9% in Vietnam and 26.7% in Russia. He also said the payout ratio for 2025 is set to jump sharply from 18.8% to 36.2%, which should improve the company's previously underwhelming appeal as a shareholder-return play.
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sms@fnnews.com Sung Min-seo Reporter