[THE INVESTOR]  The recall fiasco of Samsung Electronics’ Galaxy Note 7 smartphone is sending down the shares of the company’s sister parts makers who are also key suppliers to the Note phone.

Since the first report of exploding batteries on Aug. 24 in Korea, shares of Samsung Electro-Mechanics, the camera module maker, and Samsung SDI, the supplier of the faulty batteries, tumbled almost 20 percent on Sept. 12.

Shares of Samsung Electro-Mechanics closed at 47,700 won (US$42.87) on the day, down 18.87 percent from the closing price of 58,800 won on Aug. 24. 

The electronic parts unit of Samsung Group is a major supplier of the handset maker for key components such as cameral modules.

“The risks have increased for Samsung Electro-Mechanics due to the recent battery issue of the new flagship smartphone,” Lee Jong-wook, an analyst from Samsung Securities, said.

Samsung SDI, whose lithium-ion battery has been pinpointed as the main culprit of the battery fiasco, dropped 20.25 percent to close at 96,500 won on Sept. 12, which compared to 121,000 won on Aug. 24.

Some smaller suppliers also bore the brunt of the recent battery crisis as their shares nosedived in recent weeks.

Kolen, the sole supplier of iris camera lenses for the smartphone, saw its stock drop 39.85 percent from 9,160 won on Aug. 24 to 5,510 won on Sept. 12.

Amotech, a near field communication chipmaker, and radio frequency module maker Wisol saw their stocks decrease 18.63 percent and 13.93 percent, respectively, during the cited period.

Ha Joon-doo, an analyst from Shinhan Investment, anticipated that “the downward trend of Samsung SDI’s shares will be inevitable for a while.”

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