Ask Warren

JONBUR Research · Update note

Samsung Electro-Mechanics · 009150 · Electronic components

Samsung Electro-Mechanics Q3 Preliminary Operating Profit Rises 165.5% to ₩691.0B

Why this report

Written after:

Samsung Electro-Mechanics reported preliminary Q3 2026 consolidated operating profit of ₩691.0B, up 165.5% from a year earlier, on revenue of ₩3.76T. This is the first reported evidence of the recovery described in our previous report, but the model estimate barely moves and remains far below the share price.

Written Oct 28, 2026 · Data as of Oct 27, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

XfWATGr/in@

What happened

In a preliminary consolidated earnings filing dated 2026-10-28, the company reported Q3 2026 (July to September) revenue of ₩3.76T, up 30.3% from ₩2.89T a year earlier and up 8.9% from ₩3.46T in Q2.

Operating profit was ₩691.0B (₩690,957M), up 165.5% from ₩260.3B a year earlier and up 56.9% from ₩440.4B in Q2. That implies an operating margin of about 18.4%, calculated from the filing figures, against 9.0% a year earlier.

Pre-tax profit from continuing operations was ₩609.7B (+116.4% y/y). Net income was ₩485.0B (+115.7% y/y), of which ₩468.7B belongs to owners of the parent (+113.2%).

For the first nine months, revenue was ₩10.43T (+24.0%), operating profit ₩1.41T (+109.5%) and net income ₩1.07T (+111.6%). The filing notes that these are preliminary figures and may differ from final numbers. News headlines on the same day repeated these figures.

What it changes for the thesis

Our previous report described an earnings recovery with the price running ahead of profits, and named the next earnings release as the key test of whether orders and pricing reach revenue and margins. This release is a strong first answer: revenue growth accelerated and margins widened sharply.

The filing does not break out what drove the gain, so it does not by itself confirm that the substrate orders or the Nvidia-related news are the cause. Operating profit rose faster than pre-tax profit, which suggests non-operating items were less favorable than the operating line; the filing gives no detail on why. The recovery thesis is supported, while the question of how durable it is remains open.

What it changes for the valuation

The model's inputs are still trailing results through H1 2026, so this quarter is not yet in the estimate. The model now gives ₩50,236 (bear), ₩85,337 (base) and ₩137,302 (bull) per share, a model estimate based on the assumptions shown, not a price target. The previous range was ₩49,600, ₩84,134 and ₩135,146, with a discount rate of 12.2% now versus 12.3% before. The small shift is from the rate, not from the new results.

The latest close in our data is ₩1,201,000 (2026-10-27), well above even the bull case. Market multiples are P/E 89.0, P/B 8.8 and P/S 7.2, based on trailing figures that exclude Q3. Once Q3 results enter the trailing figures, the multiples and the model may change. The size of that change is not available yet.

Closing view

The Q3 release is clearly strong: operating profit more than doubled from a year earlier and margins rose to roughly 18%. It supports the recovery described previously. But the model estimate has not yet absorbed these results, and the share price sits far above it, so the market is pricing in a lot beyond one good quarter. The preliminary numbers may be revised, and the filing says nothing about the drivers or outlook. Later filings, the final earnings and whether margins hold in coming quarters will show how much of this is lasting.

Model estimate of fair value

Bear
₩50,236
-96%
Base
₩85,337
-93%
Bull
₩137,302
-89%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the 5-year discounted cash flow model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 12.2%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 28, 2026Update noteEarningsSamsung Electro-Mechanics Q3 Preliminary Operating Profit Rises 165.5% to ₩691.0B
  2. Oct 21, 2026Update noteModel fair value changeSamsung Electro-Mechanics: Model Fair Value Estimate Cut 40% to ₩84,134 Per Share
  3. Oct 20, 2026Update noteNewsSamsung Electro-Mechanics: Large Substrate Order News Arrives as Shares Fall Below Last Report's Level
  4. Oct 13, 2026InitiationSamsung Electro-Mechanics: Share Price Up Sharply as Earnings Recover, Multiples Far Above Recent Levels

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information