[Click eStock] "Samsung SDI Stock Price Bottom at 460,000 Won... Significant Earnings Improvement This Year"

[Asia Economy Reporter Ji Yeon-jin] DB Financial Investment announced on the 16th that it expects a significant improvement in Samsung SDI's performance starting this year and maintains a buy investment opinion and a target price of 920,000 KRW.

Kwon Seong-ryul, a researcher at DB Financial Investment, stated, "Samsung SDI's operating profit increases by about 100 billion KRW each quarter, driving performance improvement, with the decisive factor being the rising profit contribution from medium-to-large batteries. This year, the automobile battery market and the ESS (Energy Storage Solution) market are expected to grow by more than 30%, and sales that were deferred due to production disruptions will resume. The proportion of the highly profitable Gen5 battery will increase, raising the profit contribution of medium-to-large batteries from zero last year to over 20% this year, and overall operating profit is expected to increase by 39%."

Operating profit for the first quarter of this year is expected to be 271.7 billion KRW, a 2.3% increase from the previous quarter. As the proportion of IT in the upstream industry decreases, the seasonal off-season impact is lessened, especially noticeable in electric vehicle (EV) batteries, M-Mobility small batteries, and medium-to-large batteries. Automobile batteries see increased sales centered on major customers' new models, small batteries have pouch-type declines offset by cylindrical types, and electronic materials expect OLED materials to decrease but semiconductor materials and polarizing films to maintain sales.

Researcher Kwon said, "Samsung SDI surpassed a 20% sales share in automobile batteries and re-entered the 10 trillion KRW sales era since 2019, allowing valuation discussions based on the valuation track since then. The lowest price-earnings ratio (PER) since 2019 is 21.6 times, which suggests a floor price of around 460,000 KRW." He added, "Compared to the current stock price, there is a 14% downside risk, but if the market turns, it can yield over 70% profit."

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