"Foreign Investors Bought Even in the Crash" Samsung Electro-Mechanics Raises Target Price to 1.75 Million Won... SK Telecom Seen as Benefiting from Stable Earnings and Dividend Normalization [Stocktopia]

[Financial News] Here is a roundup of major brokerage reports as of the morning of July 16.
Samsung Electro-Mechanics has seen its foreign ownership ratio rise even during the recent KOSPI slump, leading to an assessment that the company has demonstrated strong growth potential in multilayer ceramic capacitors (MLCC) and semiconductor package substrates for FC-BGA.
SK Telecom has had its investment rating upgraded on the back of improving earnings and a normalized dividend trend, while KEPCO is expected to benefit from nuclear power and policy momentum despite short-term earnings concerns in the second half, analysts said.
◆Samsung Electro-Mechanics (009150)— IBK Investment & Securities / Analyst Kim Woon-ho
- Target price: 1.75 million won (up 66.7% from 1.05 million won) | Previous close: 1.413 million won
- Investment rating: Buy (maintained)
IBK Investment & Securities raised its target price for Samsung Electro-Mechanics to 1.75 million won, citing strong net buying by foreign investors even during the market rout and the robust growth potential of its key components.
As foreign investors have been reducing their stakes in AI-related companies, they have continued to buy Samsung Electro-Mechanics. Analyst Kim said, "Foreign investors' behavior toward Samsung Electro-Mechanics is different from that seen in other IT companies," adding, "This suggests they see strong growth potential in FC-BGA and MLCC."
It is also positive that the company’s large-scale capital expenditures to expand production capacity are being carried out based on confirmed orders from customers.
Kim explained, "Samsung Electro-Mechanics will spend 10 years' worth of CAPEX over the next three years," and added, "This means the investment is backed by confirmed customer demand." He continued, "We estimate this includes surging AI semiconductor volumes, new FC-BGA customers, and demand from customers switching substrates to FC-BGA."※ Multilayer Ceramic Capacitor (MLCC)A capacitor made of ceramic. It is a tiny component that regulates current flow in circuits. Because it is widely used in everything from smartphones to high-performance AI servers and automotive parts, it is often called the "rice of the electronics industry."※ Flip-Chip Ball Grid Array (FC-BGA)A high-value semiconductor package substrate that connects semiconductor chips to the main board. By flipping the chip and connecting it through tiny solder balls, it enables faster signal transmission and better heat control, making it essential for high-performance AI processors.
◆SK Telecom (017670)— Meritz Securities / Analyst Jisoo Jeong
- Target price: 110,000 won (up 12.2% from 98,000 won) | Previous close: 85,000 won
- Investment rating: Buy (upgraded)
Meritz Securities upgraded its investment rating on SK Telecom from "Hold" to "Buy," saying second-quarter earnings are expected to meet market forecasts and that the company is entering a phase of earnings and dividend normalization.
Analyst Jeong noted, "SK Broadband's data center IT capacity currently stands at 137MW, which is weaker than peers. However, I expect it to make a meaningful contribution to earnings as the Ulsan DC (100MW) and Seoul 3 (75MW) are completed in 2027 and the colocation business expands." He added that once the company completes its preemptive data center investments to meet surging demand for high-performance AI computing, its non-telecom business will firmly establish itself as a reliable cash cow.
Jeong also forecast second-quarter DPS at 830 won, unchanged from the previous quarter, and projected full-year 2026 DPS at 3,320 won. "Annual dividends will fall short of the 3,540 won level seen in 2024, but shareholders' actual take-home amount will improve under the reduced dividend policy," he said.
◆Korea Electric Power Corporation (KEPCO) (015760)— Shinhan Investment & Securities / Analyst Han Seung-hoon
- Target price: 45,000 won (up 4.7%) | Previous close: 33,900 won
- Investment rating: Buy (upgraded)
Shinhan Investment & Securities expects KEPCO's second-quarter operating profit to meet consensus and advised investors to focus less on short-term earnings pressure and more on the new nuclear power plant operations and overseas project momentum that will gain traction in the second half.
Analyst Han said, "The average liquefied natural gas (LNG) price for power generation in the second quarter fell 4.7% from the previous quarter to 768.6 won per Nm3, while the System Marginal Price (SMP) also declined 3.7% to 118.1 won per kWh, suggesting that the impact of higher energy prices has not yet been fully reflected in earnings." He added that fuel cost pressure remained relatively mild through the second quarter, allowing KEPCO to defend earnings within market expectations.
From the third quarter, a faster rise in the SMP will likely make a short-term earnings slowdown unavoidable. However, strong policy and nuclear power momentum are expected to offset that. Han added, "With the announcement of three major mega projects, large-scale power demand will increase further, creating the possibility of additional large nuclear reactors and small modular reactors in the 12th Basic Plan for Electricity Supply and Demand, which is expected to be announced at year-end." He also said it would be worth watching for more concrete details on a regional differentiated electricity pricing system in the second half.※ System Marginal Price (SMP)This refers to the wholesale electricity price applied when KEPCO buys power from private generators through the Korea Power Exchange. The lower this figure is, the lighter KEPCO's electricity procurement burden becomes, which helps improve earnings.※ Small Modular Reactor (SMR)A small nuclear reactor with an electric output of 300MW or less, integrating key equipment such as the reactor and cooling system into a single module. Thanks to its strong safety profile and flexible siting, it is considered a next-generation game changer in the era of carbon neutrality.

sms@fnnews.com Sung Min-seo Reporter