[THE INVESTOR] Samsung Electro-Mechanics will miss fourth-quarter earnings expectations, said Daishin Investment and Securities on Dec. 18 lowering the target price to 180,000 won (US$159.11) from 220,000 won.
Its operating profit in the period will come in at 314.6 billion won, below market consensus, due to weakening demand from China’s mobile sector due to trade conflicts with the US. In addition, sluggish smartphone sales of Samsung and Apple have undermined sales of MLCC in December. It has entered a conventional low season and inventory adjustment period, and sales of printed circuit boards and camera modules have been slower than expected, said analyst Park Gang-ho.
Average supply price of MLCC, however, remains on an upturn and operating profit in 2019 will increase, said the analyst suggesting an “outperform” recommendation.
By Hwang You-mee (firstname.lastname@example.org)