Samsung Electro-Mechanics ended an 11-session winning streak and turned lower, as investors locked in gains after a sharp run-up, analysts said.
As of 2:29 p.m., the stock was down 44,000 won, or 5.42%, at 768,000 won, according to the Korea Exchange. The shares had risen for 11 straight sessions from April 8 through April 22, surging from 514,000 won to 812,000 won and setting fresh record highs along the way.
The rally reflected expectations that demand for electronic components would improve as artificial intelligence use spreads. Investors also focused on anticipated growth in demand for package substrates used in AI servers and multilayer ceramic capacitors, or MLCCs.
Brokerages have also raised their price targets. Daishin Securities lifted its target to 920,000 won, citing expectations for an industry upturn. It forecast structurally tight MLCC supply and expanding demand led by AI and automotive electronics.
The shift is expected to support broader profitability gains. The company is seen maintaining high utilization in its FC-BGA and MLCC businesses while improving its product mix by increasing the share of higher value-added products. Some in the market expect results to come in above existing forecasts.
From the second quarter of 2026, operating profit is expected to top the market consensus in an earnings surprise. While the stock has jumped 66.2% over the past month, adding to near-term 부담, analysts said the pace of earnings improvement suggests further upside may still be possible.
Still, the heavy short-term gains appeared to spur profit-taking on the day, pushing the shares lower.
* This article has been translated by AI.
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