Samsung Electro-Mechanics(009150): Rapidly improving earnings
- 2Q06 comment
- Resuming our coverage with TP of KRW40,000 and BUY recommendation
> 2Q06 consolidated sales, OP and OP margin were reported at KRW750.2bn, KRW25.7bn and 3.4% respectively.
> Sales have gone down 2.9% q/q as the company's optical pick-up division spun-off.
> MLCC ASP rose 7%.
> SEMCO’s earnings are forecast to improve rapidly from 3Q06 on the back of
1) profit improvement with handset HDIs,
2) continuously robust sales of FC-BGAs and BGAs,
3) stabilizing MLCC ASP, and
4) turnaround in the RF and OS divisions.
> 3Q06 sales and OP are estimated to increase 4.4% q/q and 34.6% q/q respectively to KRW783.5bn and KRW34.6bn.
> Consolidated FY06 OP is forecast to improve substantially to KRW121.8bn from KRW42.6bn in FY05. |
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