[Click eStock] "Samsung SDI, 2Q Earnings Surprise Expected"... Target Price Soars to 950,000 Won

[Asia Economy Reporter Ji Yeon-jin] Shinhan Financial Investment announced on the 30th that it expects a significant improvement in Samsung SDI's performance due to the turnaround to profitability in the automotive battery business in the second quarter, and raised the target stock price by 5.5% to 950,000 KRW, considering the growth trends of electric vehicles in the US and China.

So Hyun-chul, a researcher at Shinhan Financial Investment, said, "In the second quarter this year, growth stocks such as secondary battery stocks underperformed due to the sharp rise in value stocks and cyclical stocks," adding, "However, considering the explosive growth of electric vehicles in the US and China, a positive approach to Samsung SDI is now necessary. The sharp rise in CATL's stock price in the second quarter has highlighted Samsung SDI's relative attractiveness."

Samsung SDI's sales in the second quarter of this year are expected to increase by 32.4% year-on-year to 3.389 trillion KRW, and operating profit is expected to surge 158% to 269 billion KRW. Sales of batteries for smartphones and power tools increased by 8.8%, and operating profit from automotive batteries is expected to turn positive. Sales of ESS batteries in the North American region are expanding, and sales of polarizers, OLED, and semiconductor materials are also showing strong performance. Sales of high value-added cylindrical batteries are expected to increase due to economic recovery in North America and Europe.

In the second half of this year, Samsung SDI plans to supply Gen5 batteries that apply high-nickel NCA cathode materials and silicon-based anode materials. Gen5 batteries not only improve costs by more than 20% but also enable driving distances of over 600 km. Due to the expansion of solar power under the Biden administration in the US, ESS batteries are experiencing explosive growth, and demand for mobile DRAM and OLED materials is expected to increase significantly with the launch of new smartphones such as the iPhone in the second half of the year.

Sales for this year are projected to increase by 24.1% year-on-year to 14.0174 trillion KRW, and operating profit is expected to grow by 71.6% to 1.1522 trillion KRW.

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