Samsung Electro-Mechanics showed strength, reclaiming the 1.5 million won level during the session. Investor sentiment improved as Yuanta Securities projected second-quarter earnings that would exceed market expectations (consensus).

As of the afternoon of the 10th, Samsung Electro-Mechanics shares were trading at 1,591,000 won, up 98,000 won (6.56%) from the previous trading day, recovering the 1.5 million won level intraday. Strong buying pressure continues to flow in.

In a report titled '2Q26 Preview: An unsurprising surprise' issued on the same day, Yuanta Securities projected Samsung Electro-Mechanics' second-quarter consolidated revenue at 3.24 trillion won and operating profit at 417.9 billion won. The firm diagnosed that the company is expected to post earnings that surpass market consensus.

■ Component Division Serves as Key Driver The biggest factor behind the earnings improvement is the component division. Yuanta Securities analyzed that the product mix improved as the share of high-value multi-layer ceramic capacitors (MLCC) for servers expanded, which consequently drove up the average selling price (ASP).

The package business is also expected to contribute to profitability enhancement. Rising sales prices for FC-BGA and an increasing share of server-use products are expanding profit leverage. Meanwhile, the optics division is expected to remain relatively sluggish, but its impact is limited given its small share of overall earnings.

■ AI Infrastructure Demand Drives Growth The market is focusing on the fact that increased investment in artificial intelligence (AI) servers and data centers directly translates into higher demand for Samsung Electro-Mechanics' high-value electronic components. Server-use MLCCs and FC-BGAs are cited as representative beneficiaries of AI infrastructure expansion, further raising expectations for earnings improvement.

Investors are closely watching key variables including the pace of future AI server investment expansion, global electronic component demand trends, supply status of major clients, and the actual second-quarter earnings announcement.

[※ This article was written with the assistance of AI. It was produced based on publicly available securities firm reports and intraday market prices. Stock prices and market conditions may fluctuate in real time. Investment decisions should be made carefully at the investor's own responsibility after directly verifying the latest disclosures and market prices.]