Samsung Electro-Mechanics Co Ltd

009150: XKRX (KOR)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	₩717,668.00	Ftsxnkd	Bshmzzrb

Solid Demand for High-End Components Mitigates the IT Weakness; Semco’s Shares Undervalued

Kazunori Ito

Jul 29, 2022

Business Strategy and Outlook

Samsung Electro-Mechanics, or Semco, is the global second supplier of multilayer ceramic capacitors, or MLCCs, which account for 45%-50% of Semco’s revenue and 70%-80% of operating income. MLCCs are necessary to stabilize and control electric flow, and thus necessary for all electronic circuits. We believe the robust demand for MLCCs, mainly from smartphone and automotive manufacturers, will be the driver of Semco’s growth in the midterm.

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