[Click eStock] "Samsung SDI, Undervalued Stock Attractiveness Highlighted... Target Price Up"

[Asia Economy Reporter Park Jihwan] Hana Financial Investment on the 13th analyzed that Samsung SDI's stock price has entered an undervalued range compared to the expected earnings. Accordingly, it maintained the investment opinion as 'Buy' and raised the target price by 11.43% from the previous 350,000 KRW to 390,000 KRW. The current stock price is at a PER of 16 times based on this year's expected earnings, which is lower than the lower end of the average for the past three years, indicating excessive undervaluation.

Kim Hyunsoo, a researcher at Hana Financial Investment, said, "Although the electric vehicle battery sector is facing a temporary decline in profitability, it is expected to return to profitability within this year," and evaluated, "First-quarter sales are expected to be 2.2 trillion KRW, down 4% year-on-year, and operating profit is expected to decrease by 60% to 47.8 billion KRW, indicating a decline in performance compared to the previous year."

However, the electric vehicle battery sector's sales reflection will begin after the second quarter when new electric vehicle launches are in full swing. Accordingly, profitability is expected to improve from the second quarter, with a return to profitability possible in the third quarter.

Researcher Kim Hyunsoo stated, "Exports of lithium-ion batteries continue to increase, and the Hungarian production line is steadily increasing its operating rate without yield issues," adding, "Considering that there are no changes in the new car launch schedules of major European electric vehicle clients, maintaining profitability in the second half of the year is possible."

However, in the case of the polarizing film and OLED materials sectors, sales decline is expected to be unavoidable for the time being. Researcher Kim explained, "Due to intensified competition in the polarizing film market and the downsizing of Samsung Display's LCD business, the sales decline compared to the previous quarter is expected to be greater than that of the same period last year."

This content was produced with the assistance of AI translation services.