SEMCO(009150): TP revised up
- Company update
- Revise up TP to KRW47,200
■ Greatly improved profit structure
Now that SEMCO detached its non-performing divisions as a restructuring measure, the company focuses on core items(MLCC, FC-BGA, PCB substrate, camera module, and LED) and has improved its profit structure as a result.
■ Growth drivers: MLCC, FC-BGA, and camera module
Sales portion of ultrahigh capa MLCC is increasing. We like SEMCO’s aggressive capex for high-margin CPU-use MLCC. Camera module shipments to Motorola are growing. LED sales will likely be substantial in the future.
■ 4Q06 results are expected to come in solid
We expect 4Q06 OP to increase 48.4% q/q to KRW42.7bn on a consolidated basis thanks to robust FC-BGA, PCB substrate, MLCC and camera module. For FY06, NP is expected to turn black to KRW97.5bn from last year’s net loss of KRW67.3bn. FY07 NP is forecast to increase 54.3% y/y to KRW151.1bn.
■ Revise up TP to KRW47,200 and maintain BUY recommendation
We marginally raised our TP to KRW47,200 from KRW46,000 by applying 6-year average P/B multiple(2.0x) on 12-month forward BPS of KRW23,592 and maintain our BUY recommendation. |
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