LG Group's net asset value hits an all-time high as AI and robotics capabilities stand out; Samsung Electro-Mechanics' target price doubles on 'unprecedented boom' in AI components [Stocktopia]

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[Financial News] Here is a roundup of major securities firm reports as of the morning of June 1.
Analysts said LG Group's net asset value, or NAV, has reached a record high of 37.5 trillion won, helped by rising share prices of listed subsidiaries and growing recognition of its AI and robotics new business capabilities.
Samsung Electro-Mechanics was seen riding the AI component boom, while Hanwha Systems was expected to deliver faster profit growth than its rivals on the back of expanding exports of air defense systems such as Cheongung-II.
\r\r◆LG Group (003550)― KIWOOM Securities / Analyst Ahn Young-joon
- Target price: 200,000 won (up 73.9% from 115,000 won) | Previous close: 146,600 won
- Investment opinion: Buy (maintained)
KIWOOM Securities raised its target price for LG Group to 200,000 won, saying the company's NAV hit a record 37.5 trillion won as attention grew on its AI and robotics new business capabilities and as share prices of listed subsidiaries rose.
Analyst Ahn Young-joon of KIWOOM Securities explained, "NAV reached a record high of 37.5 trillion won, driven by rising share prices of subsidiaries such as LG Electronics and LG CNS." He added, "The group's stock prices rose as growth potential in new businesses such as AI and robotics came into focus."
He also said, "LG can expect not only a higher NAV from the rise in subsidiary share prices, but also direct benefits from the growing spotlight on the group's new business capabilities."
Analysts said the rising value of LG AI Research, which ranked first in the government's first evaluation of its independent AI foundation model project, is highly likely to translate directly into higher corporate value for LG given its ownership structure.※NAV (Net Asset Value)This refers to the pure value of a company after subtracting debt from assets. For a holding company like LG Group, most assets are stakes in subsidiaries, so NAV is calculated by adding up the market value of listed holdings such as LG Electronics and LG CNS, then subtracting debt. When subsidiary share prices rise, the holding company's NAV rises as well.
\r\r◆Samsung Electro-Mechanics (009150)― DB Securities / Analyst Jo Hyun-ji
- Target price: 3 million won (up 87.5% from 1.6 million won) | Previous close: 2.127 million won
- Investment opinion: Buy (maintained)
DB Securities sharply raised its target price for Samsung Electro-Mechanics to 3 million won, saying the company is enjoying a simultaneous boom in key components such as MLCC and FC-BGA as AI data centers expand.
This is currently the highest target price among those suggested by securities firms for Samsung Electro-Mechanics.
Analyst Jo Hyun-ji of DB Securities noted that both MLCC and FC-BGA are backed by top-tier technological capabilities, saying, "Samsung Electro-Mechanics holds an irreplaceable position."
\r※MLCC (Multilayer Ceramic Capacitor)It is a tiny component that stores electricity flowing through a circuit and releases it as needed to keep current stable. A single smartphone contains hundreds to thousands of them, and AI servers use tens of thousands, which is why they are often called the "rice of the electronics industry."
\r※FC-BGA (Flip-Chip Ball Grid Array)This is a high-value-added substrate that connects semiconductor chips to the main board. Because the chip is mounted upside down using tiny solder balls, signals travel faster and heat dissipation is better, making it a key component in high-performance semiconductors such as AI CPUs and GPUs.
\r\r◆ Hanwha Systems (272210)― Korea Investment & Securities / Analyst Jang Nam-hyeon
- Target price: 150,000 won (up 120.6% from 68,000 won) | Previous close: 105,000 won
- Investment opinion: Buy (maintained)
Korea Investment & Securities raised its target price for Hanwha Systems to 150,000 won, saying the company is likely to post the fastest profit growth among its peers on the back of expanding exports of air defense systems such as Cheongung-II.
Analyst Jang Nam-hyeon said, "Our estimate for average annual operating profit growth from 2025 to 2028 is 99.9%, which is 66 percentage points above the global peer average of 33.9%." He added that the company has strong regional expansion potential for orders, similar to Israeli defense firm Elbit Systems.※Cheongung-II (M-SAM, medium-range surface-to-air guided missile)This is a domestically developed defensive missile that intercepts enemy aircraft and ballistic missiles at medium altitude, and it is a core asset of the Korean Air and Missile Defense (KAMD) system. It has been exported to the United Arab Emirates, Saudi Arabia and Iraq, and Hanwha Systems supplies the multifunction radar that serves as the system's "eyes."
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sms@fnnews.com Sung Min-seo Reporter