[Click eStock] "Samsung SDI Expected to Achieve Quarterly Record High Performance in Battery Division"

[Asia Economy Reporter Lee Jung-yoon] Samsung Securities maintained a buy rating and a target price of 800,000 KRW for Samsung SDI on the 15th, expecting the company's Q2 earnings this year to meet market consensus estimates.

Samsung SDI's Q2 sales are expected to be 4.6 trillion KRW, with an operating profit of 398.6 billion KRW, which aligns with the market consensus of 4.6 trillion KRW in sales and 384.4 billion KRW in operating profit. The electronic materials segment is anticipated to perform at a level similar to the previous quarter, while the battery segment is expected to increase, recording a quarterly all-time high following Q1.

Jang Jung-hoon, a researcher at Samsung Securities, explained, "Small battery sales are expected to increase by 10% compared to the previous quarter to 1.6 trillion KRW, driven not only by high-power batteries for power tools but also by steady growth in small batteries for electric vehicles (EVs). In particular, the proportion of small EV batteries is expected to rise from the mid-to-high teens percentage in Q1 to the 20% range in Q2."

He added, "Stable growth is also expected in medium-to-large batteries based on orders from clients. Among these, the share of the new Gen5 battery product is estimated to have expanded from the mid-teens percentage in Q1 to around 20% in Q2," and "Sales in the medium-to-large battery segment, including ESS, are projected to increase by 23% quarter-on-quarter to 2.2 trillion KRW."

Samsung SDI is reportedly preparing a 46-form factor pilot line in Cheonan, Chungnam, during Q2 and will proceed with sample verification with clients. As Tesla's 4680 mass production is verified in the second half of the year, increased interest from global automakers in cylindrical batteries and the possibility of re-rating are expected to have a positive impact on the stock price. However, Researcher Jang noted, "Due to a conservative capacity expansion strategy, it seems difficult for the company to escape a discount situation compared to peer companies in the market."

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