[EQUITIES] Samsung Electro-Mechanics’ Q3 profits to improve on Galaxy Note 7

[THE INVESTOR] Although Samsung Electro-Mechanics is anticipated to post a lower-than-expected operating profit in the April-June period, the electronics component maker will see its profit grow in the third quarter thanks to robust sales of Samsung Electronics’ upcoming Galaxy Note 7 smartphone, according to a recent report.

“Samsung Electro-Mechanics’ operating profit in the second quarter will likely come in at 10 billion won ($8.80 million), missing market expectations. The operating profit will improve in the third quarter,” said Lee Soon-hak, an analyst from Hanwha Investment & Securities, in his investment report.

The firm’s anticipated supply of dual-lens camera modules to Chinese smartphone-makers in the fourth quarter will help the Korean company to earn stable profits in the coming months.

He anticipated the impact of a weaker Japanese yen will ease soon as the currency will likely strengthen down the road.

With the high price competitiveness over its Japanese rivals, Samsung Electro-Mechanics’ camera module business will see its operating profit jump 106 percent to 104.9 billion won next year.

The operating profit of the company for the entire 2017 will stand at 292 billion won, the analyst anticipated.

By Kim Young-won (wone0102@heraldcorp.com)