IBK Investment Securities has raised its target price for Samsung Electro-Mechanics by 66.7%, from 1.05m won to 1.75m won, while reiterating its buy recommendation.

Kim Un-ho, an analyst at IBK, cited the growth prospects of FC-BGA (flip-chip ball-grid-array) semiconductor substrates and multilayer ceramic capacitors (MLCCs) as the basis for his revised outlook. He forecasts operating profit of 4.825tn won by 2028, with 1.764tn won projected for 2026—a 93% year-on-year increase—rising to 2.944tn won in 2027.

The new target price was derived using a sum-of-the-parts valuation methodology, applying the valuation multiples of Japan's Ibiden to the packaging division and those of Japan's Murata Manufacturing to the MLCC business.

Foreign investor ownership, which bottomed out at 37.5% on 22nd June, has since recovered steadily. The stake stood at 39.6% on 30th June, when the KOSPI (South Korea's main stock index) began to decline, and reached 40.0% by 15th July.

For the second quarter of 2026, IBK projects revenue of 3.474tn won, up 8.2% quarter-on-quarter, and operating profit of 439bn won, a 56.5% sequential increase. The improvement in profitability is attributed to favourable exchange-rate effects, higher unit prices, and rising capacity utilisation rates.

Capital expenditure for 2026 is forecast to surge to 4.7tn won, driven primarily by soaring demand for FC-BGA substrates. Samsung Electro-Mechanics plans to invest a total of 23tn won in packaging-related facilities by 2040, allocating 15tn won to its Busan plant and 8tn won to its Sejong facility.

FC-BGA revenue is expected to reach 2.141tn won in 2026, an 87.6% year-on-year rise, with the share of server applications climbing from around 40% in the first quarter to approximately 60% in the second.

In the MLCC segment, 2026 revenue is projected at 6tn won, up 29.1% year-on-year, with operating profit forecast to rise 92.8% to 1.1tn won. MLCCs designed for AI servers are reported to carry ten times the unit count and command prices roughly 30 times higher than those used in conventional servers.