[Weekly HOT Stocks] Samsung SDI, Foreigners and Institutions Net Buying↑... Record High Rally

SK Securities Raises Samsung SDI Target Price from 600,000 KRW to 700,000 KRW

[Asia Economy Reporter Kum Boryeong] Samsung SDI has attracted significant market attention throughout the week, recording consecutive all-time highs.

According to the Korea Exchange on the 2nd, Samsung SDI closed at 628,000 KRW on the 30th of last month, up 4.49% (27,000 KRW) from the previous trading day, setting a new record high. On the 29th of last month, it also closed at 601,000 KRW, surpassing 600,000 KRW for the first time based on the closing price.

From the 28th to the 30th of last month, foreign investors net purchased Samsung SDI shares worth 74.5 billion KRW. During this period, Samsung SDI ranked 4th among the top net purchases by foreign investors across both the KOSPI and KOSDAQ markets. Institutional investors also bought shares worth 62.6 billion KRW during the same period, making Samsung SDI the top net purchase stock among them.

Kim Young-woo, a researcher at SK Securities, explained, "When traditional automakers were focused on hybrid vehicles, Tesla brought an electric vehicle revolution that is an unstoppable trend. Since 2022, Tesla has been producing batteries in-house, and the announcement of a $25,000 affordable model to be released in 2023 has triggered a secondary 'me-too' effect. From the perspective of automakers, they need to have a full lineup of electric vehicles ranging from high-end to low-end models, but battery supply is the biggest headache. Except for Tesla and Toyota, mass production of competitive batteries is not an easy issue."

Even if companies like GM and Ford start producing batteries, securing cost competitiveness compared to existing secondary battery manufacturers remains uncertain. Ultimately, automakers are expected to expand business with secondary battery manufacturers and key material suppliers.

Researcher Kim added, "In 2021, stock prices will vary depending on national policies driving electric vehicle promotion and the status of affordable electric vehicle projects by automakers. However, since almost all automakers have presented aggressive electric vehicle expansion strategies following Tesla's Battery Day, the shortage of secondary battery supply is expected to continue for a long time."

SK Securities has raised Samsung SDI's target stock price from 600,000 KRW to 700,000 KRW.

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