[Click eStock] "Samsung SDI, Q4 May Fall Short of Expectations but Growth Continues"

Sales and Operating Profit Expected to Fall Below Market Forecast
Growth Based on Electric Vehicles Remains Valid... Operating Profit Expected to Surpass 1.6 Trillion KRW Next Year

[Asia Economy Reporter Minwoo Lee] Samsung SDI is expected to record earnings slightly below the market consensus for the fourth quarter of this year. This is due to reduced production by automobile manufacturers caused by semiconductor supply chain disruptions. However, since the expansion of the electric vehicle production ratio is a prevailing trend, the high growth trajectory is expected to remain valid.

On the 22nd, Daishin Securities maintained its 'Buy' investment rating and target price of 920,000 KRW for Samsung SDI based on this background. The closing price on the previous day was 645,000 KRW.

Daishin Securities forecasted that Samsung SDI's consolidated operating profit for the fourth quarter of this year would be 403.2 billion KRW, about 4.7% below the market consensus of 422.9 billion KRW. Sales were also estimated to be 4.02 trillion KRW, approximately 2% below the market consensus.

The growth trend itself has not been broken. Daishin Securities' earnings forecast indicates that both sales and operating profit will increase by 23.6% and 63.8%, respectively, compared to the same period last year. Compared to the previous quarter, they are expected to increase by 16.9% and 8.0%, respectively.

Researcher Kangho Park of Daishin Securities explained, "Due to reduced production by automobile manufacturers caused by semiconductor supply chain disruptions, sales and operating profit for electric vehicles are expected to slightly weaken compared to estimates. However, with the expansion of the electric vehicle production ratio and full-scale production, the high growth trend remains valid from the perspective of secondary battery companies. Among small batteries, cylindrical batteries will see an increased electric vehicle ratio, and the profitability of the electronic materials sector is expected to meet estimates."

Operating profit for next year is expected to reach 1.659 trillion KRW, an increase of 37.7% compared to this year's forecast. Researcher Park analyzed, "With the expansion of electric vehicle production by major customers such as BMW and the start of supply of next-generation batteries like the G5, both sales and profitability will increase simultaneously. This will continue to play a central role in overall scale and profit growth."

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