Samsung Electro-Mechanics surged more than 9% intraday Monday, standing out as the strongest performer among large-cap stocks even as the broader domestic market fell sharply. Buying interest built on second-quarter earnings that beat market expectations, combined with continued optimism over improving conditions in the multilayer ceramic capacitor (MLCC) industry.
According to Korea Exchange, Samsung Electro-Mechanics was trading up 9.37% at 1.25 million won ($871) as of 9:50 a.m. Monday, matching its intraday high for the session. The stock had already hit the daily price limit on Friday, closing at the upper ceiling.
At the same time, most other large-cap stocks were in the red. Samsung Electronics fell more than 7%, while SK Hynix and Samsung Life each dropped more than 6%. Samsung Electronics preferred shares, LG Energy Solution and Samsung Biologics also declined around 4%. SK Square and Hyundai Motor were among the few other large-caps holding modest gains alongside Samsung Electro-Mechanics.
Samsung Electro-Mechanics posted second-quarter sales of 3.46 trillion won and operating profit of 440.4 billion won, up 24.2% and 106.7%, respectively, from a year earlier. Growth was driven by higher shipments of high-value MLCCs for AI servers and data centers, along with rising selling prices and improved utilization rates for server-use flip-chip ball grid array (FC-BGA) substrates.
Analysts said the MLCC industry is undergoing a structural improvement as supply shortages persist, particularly for AI server applications. "The supplier-favorable market environment is strengthening further," said Kim Min-gyeong, an analyst at Hana Securities. "Surging demand for AI server MLCCs is expected to push profitability in the components segment above previous peak levels."
Strong results from Japanese rival Murata also lifted investor sentiment. With demand for AI server MLCCs rising rapidly and major global manufacturers maintaining high utilization rates, the supply-side advantage is likely to persist, analysts said.
kacew@heraldcorp.com
