“Samsung Electro-Mechanics’ AI Component Boom Could Send Shares to KRW 2.8 Million” — Target Price Maintained; Alteogen Signs KRW 4.4 Trillion “Mega Deal” with Novartis [Stocktopia]

[Financial News] Here is a roundup of reports from major securities firms released on the morning of September 3.
Samsung Electro-Mechanics is expected to post its strongest-ever third-quarter results as shortages of artificial intelligence (AI) components worsen, according to an analysis.
Alteogen’s target price was raised after the company signed a technology-transfer agreement worth up to KRW 4.4 trillion with global pharmaceutical company Novartis and was credited with pioneering the world’s first development of a gene therapy converted into a subcutaneous injection. Doosan Fuel Cell’s stock fell despite winning a fuel-cell order worth approximately KRW 500 billion for a U.S. data center, making additional orders and regulatory easing key to a rebound.
◆ Samsung Electro-Mechanics (009150)— Daishin Securities / Researcher Park Kang-ho
— Target price: KRW 2.8 million (maintained) | Previous closing price: KRW 1.4 million
— Investment opinion: Buy (maintained)
Daishin Securities maintained its target price of KRW 2.8 million for Samsung Electro-Mechanics, saying its third-quarter operating profit is expected to exceed both its previous estimate and the market consensus as shortages of AI components—including Flip Chip Ball Grid Array (FC-BGA) substrates and multilayer ceramic capacitors (MLCCs)—intensify.
Samsung Electro-Mechanics generates revenue in dollars, making a decline in the won-dollar exchange rate a negative factor that reduces profits. The brokerage raised its forecast even after taking that factor into account.
Researcher Park Kang-ho stated, “The upward revision to third-quarter operating profit is a differentiated investment factor compared with downward earnings forecasts for other IT companies.” He added, “Even after reflecting the 10% decline in the average third-quarter exchange rate, the upward revisions to the previous estimate and consensus forecast indicate that shortages of AI components, including FC-BGA and MLCCs, have worsened.” The analysis suggests that demand for components from AI servers and data centers is strong enough to offset the negative impact of a weaker exchange rate.
Park said, “Third-quarter revenue and operating profit are estimated to reach record quarterly highs, and the record-breaking trend is expected to continue through next year.” He added, “We expect growth of more than 100% year on year through the first quarter of next year.”※ Flip Chip Ball Grid Array (FC-BGA)This is a high-value substrate that connects semiconductor chips to mainboards. Because the chip is flipped and attached using tiny solder balls, the method enables faster signals and better heat dissipation, making FC-BGA a key component in high-performance AI semiconductors.※ Multilayer Ceramic Capacitor (MLCC)This is an ultra-small component that stabilizes current in a circuit by storing electricity and releasing it as needed. Hundreds to thousands are used in a single smartphone, while tens of thousands are used in AI servers, earning MLCCs the nickname “the rice of the electronics industry.”
◆ Alteogen (196170)— Shinhan Investment & Securities / Research Fellow Eom Min-yong and Researcher Yoon Seok-hyun
— Target price: KRW 540,000 (raised 12.5%; previous target: KRW 480,000) | Previous closing price: KRW 298,500
— Investment opinion: Buy (maintained)
Shinhan Investment & Securities raised its target price for Alteogen to KRW 540,000 and maintained it as its top pick in the sector, saying the company had pioneered the world’s first development to convert a gene therapy from an intravenous injection into a subcutaneous injection through a technology-transfer deal worth up to KRW 4.4 trillion with Novartis.
Research Fellow Eom Min-yong and Researcher Yoon Seok-hyun noted, “The significance of this deal is that Novartis joined forces with Alteogen to convert an intravenous (IV) gene therapy in the form of an antibody-oligonucleotide conjugate (AOC) into a subcutaneous (SC) injection for the first time in the world.”
They emphasized, “The agreement is important because it will impress upon other global gene-therapy companies the necessity of conversion to SC administration.” They added, “We do not recommend approaching the stock from a short-term trading perspective and advise investors to focus on changes in value.”
Alteogen has completed four technology transfers this year, the highest number in its history, bringing the cumulative value of its contracts to KRW 16 trillion. Additional technology transfers and other positive catalysts are expected in the second half of the year.※ Subcutaneous Injection (SC)Unlike an intravenous injection (IV), which is administered through an IV line in the arm at a hospital, this is a short injection delivered beneath the skin. Because it can reduce administration time from several hours to a few minutes and greatly improve patient convenience, Alteogen’s conversion-platform technology is being used by global pharmaceutical companies to convert existing intravenous medicines into subcutaneous injections.※ Antibody-Oligonucleotide Conjugate (AOC)This is a next-generation drug-delivery platform that combines an oligonucleotide, a gene-therapy substance, with an antibody that targets specific cells at a disease site. The therapy Novartis is seeking to convert into a subcutaneous injection is in this form.
◆ Doosan Fuel Cell (336260)— DS Investment & Securities / Researcher Ahn Ju-won
— Target price: KRW 47,000 (maintained) | Previous closing price: KRW 38,700
— Investment opinion: Buy (maintained)
DS Investment & Securities maintained its target price of KRW 47,000 for Doosan Fuel Cell, saying the company had demonstrated its overseas expansion by securing a fuel-cell order worth approximately KRW 500 billion for a U.S. data center. However, the stock fell 13% amid concerns that data-center construction regulations could spread across the United States.
Researcher Ahn Ju-won assessed, “This overseas order was a contract that Doosan Fuel Cell urgently needed for its medium- to long-term growth as the domestic fuel-cell market contracts.” He added, “Given its size, it is clearly a meaningful achievement.”
However, moves are spreading in the United States to temporarily suspend data-center construction through moratoriums or restrict it over concerns about rising electricity rates, environmental pollution, and noise. Analysts said regulatory easing or additional orders would be needed to create an opportunity for the stock to rebound. Conversely, some observers believe the regulations could stimulate demand for on-site generation.
Ahn forecast, “Data-center operators that have experienced a moratorium once will have an even greater need for on-site generation in the future to reduce permitting risks.” He added, “Fuel cells will be the most preferred option.” In other words, while the regulations are a short-term negative factor, they could ultimately create an opportunity for fuel cells by increasing demand for self-generation.※ Fuel CellA fuel cell is a power-generation device that produces electricity through a chemical reaction between hydrogen and oxygen. Because it does not involve combustion, it emits relatively few pollutants and can provide a stable power supply on a small site, making it a major alternative for on-site generation at data centers that consume large amounts of electricity.※ On-site GenerationInstead of drawing electricity through the grid from a distant power plant, this method places generation equipment at the facility that consumes the electricity and produces power directly on-site. It is attracting attention as a way for data-center operators to avoid delays in grid permitting and the risk of supply shortages. Fuel cells, which operate reliably in confined spaces, are considered a representative option.

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