[Click eStock] "Samsung SDI, Undervalued Area... Reevaluation Needed Due to High Growth"

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[Asia Economy Reporter Kwon Jaehee] Hyundai Motor Securities on the 3rd issued a 'Buy' investment opinion and a target price of 1 million KRW for Samsung SDI.

Samsung SDI's second-quarter performance recorded sales of 4.7 trillion KRW and operating profit of 429 billion KRW. This represents an increase of 42.2% and 45.3% respectively compared to the same period last year, reflecting solid results in line with market consensus.

In particular, the operating profit margin (OPM) of the secondary battery business reached 5.2%, achieving the best profitability among the three domestic battery cell companies.

Kang Dongjin, a researcher at Hyundai Motor Securities, analyzed, "Samsung SDI's main customers have a high proportion of luxury brands that can pass on raw material price increases to battery prices," and "stable sales are expected to continue in the second half of the year."

With the expansion of the 5th generation battery (Gen5) share, the profitability of prismatic batteries for EVs is also expected to continuously improve in the second half. The proportion of EVs in cylindrical batteries is also expected to gradually increase as shipments to the U.S. electric vehicle startup Rivian steadily rise.

Recently, as the development of cylindrical batteries, which Samsung SDI dominates mainly among OEMs, accelerates, it is a positive factor that Samsung SDI, with high profitability, is likely to respond more actively to the market starting with the expansion of its Malaysia plant.

Researcher Kang said, "Samsung SDI's energy solutions operating profit is expected to grow by 118.7% this year and high growth of 54.3% is anticipated next year," adding, "In light of this, the current stock price is undervalued and requires revaluation due to high growth."

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