Samsung Electro-Mechanics is experiencing a strong opening, with shares rising over 4% amid expectations of its inclusion in a U.S. exchange-traded fund (ETF) focused on multilayer ceramic capacitors (MLCC) and a reassessment of the domestic semiconductor substrate sector.
As of 9:20 a.m. on June 26, shares of Samsung Electro-Mechanics were trading at 2,082,000 won, up 85,000 won (4.26%) from the previous trading day, according to the Korea Exchange.
The rise in Samsung Electro-Mechanics' stock price is attributed to the anticipated launch of an MLCC and printed circuit board (PCB) related ETF in the U.S. that reflects the potential for inclusion.
On June 17, U.S. asset management firm Roundhill submitted a securities registration statement for the 'MLCC & PCB ETF (CIRQ)' to the Securities and Exchange Commission (SEC). The effective date for the registration is set for August 31. Roundhill has indicated that the fund plans to invest significantly in Asian stocks, raising the possibility of including Samsung Electro-Mechanics, a leading player in the global MLCC market.
Analysts have noted a renewed interest in the valuation attractiveness of the domestic PCB sector.
Yang Seung-soo, a researcher at Meritz Securities, stated in a report that the stock prices of domestic PCB companies have lagged behind their overseas competitors over the past month, widening the valuation gap and presenting a re-entry opportunity.
Yang added, "Domestic companies are not only confirming price increases for both new lineups and legacy products, but they are also expected to benefit from cost leverage due to stable prices of key raw materials like copper and gold. We anticipate a gradual improvement in sales price pass-through and profitability."
He also emphasized the need to pay attention to the potential expansion of Ajinomoto build-up film (ABF) substrates by companies such as Samsung Electro-Mechanics, LG Innotek, Daeduck Electronics, and Korea Circuit. He noted that such expansions could enhance their positions in the high-end substrate market beyond merely increasing production capacity.
Yang concluded, "Given the sequential confirmation of price pass-through, cost leverage, and expansion momentum, we maintain a positive outlook on the domestic PCB sector despite recent stock price adjustments."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.