Record High March for Samsung SDI... Surpassing Hyundai Motor's Market Cap

[Asia Economy Reporter Koh Hyung-kwang] Samsung SDI has created a year-end surge, setting an all-time high. Its market capitalization surpassed 43 trillion won, eventually overtaking Hyundai Motor. This appears to reflect expectations of improved performance due to increased demand for secondary batteries.

According to the Korea Exchange on the 31st, Samsung SDI closed at 628,000 won on the last trading day of the year, up 4.4% from the previous day on the KOSPI market. After rising 7.5% on the 29th and entering the 600,000 won range for the first time (601,000 won), it marked two consecutive days of record highs. Samsung SDI's stock price, which was around 440,000 won at the beginning of last month, has risen 42.7% over the past two months. Compared to the year-end price last year (236,000 won), the increase rate reaches 166%.

As the stock price rose sharply, the market capitalization also increased significantly. Based on this year's closing price, Samsung SDI's market capitalization reached 43.1841 trillion won, swelling by 26.9557 trillion won compared to last year's year-end market cap (16.2284 trillion won). Its market cap ranking also rose to 7th place (excluding preferred stocks), pushing out Hyundai Motor (41.0242 trillion won). This trend was supported by foreign investors' love calls. Foreign investors purchased 700.7 billion won worth of Samsung SDI shares over two months from early last month to the day before. During this period, it was the third most purchased stock by foreigners.

The reason foreigners showed interest reflects expectations of performance improvement. Samsung SDI is forecasting a turnaround to profitability in mid-to-large batteries in the fourth quarter this year, along with record-high performance. The securities industry estimates that Samsung SDI's operating profit in the electric vehicle battery sector increased by more than 40% quarter-on-quarter in Q4, and energy storage systems (ESS) increased by more than 50%. According to financial information provider FnGuide, Samsung SDI's Q4 operating profit is expected to surge 1480% year-on-year.

Profit improvement is expected to be driven by electric vehicle batteries. Among mid-to-large batteries, electric vehicle batteries are experiencing significant growth due to the seasonal peak and strengthened European electric vehicle support policies. Jung Won-seok, a researcher at Hi Investment & Securities, said, "Samsung SDI is expected to show steep performance growth in Q4, the seasonal peak, with expanded sales in mid-to-large batteries and the electronic materials sector centered on semiconductors and organic light-emitting diode (OLED) materials."

Next year's performance outlook is also bright. It is predicted that total profits next year will exceed 1.2 trillion won, an increase of more than 60% compared to this year. The electric vehicle battery business has entered a full supply cycle centered on Europe, and the power energy storage system sector is expected to expand supply mainly in North America. Kim Yeon-woo, a researcher at SK Securities, said, "Due to the diversification of electric vehicle price ranges, battery demand is expected to surge," adding, "Demand for automotive secondary batteries and ESS is positive in the mid to long term."

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