[Click eStock] "Samsung SDI to Surpass 5 Trillion Won in Quarterly Sales for the First Time... Stock Also Attractive"

[Asia Economy Reporter Kwon Jaehee] Daishin Securities maintained its 'Buy' rating and target price of 850,000 KRW for Samsung SDI on the 20th.

Samsung SDI's consolidated operating profit for the third quarter of this year is expected to exceed consensus at 491.4 billion KRW. Sales are expected to surpass 5 trillion KRW on a quarterly basis for the first time.

Park Kangho, a researcher at Daishin Securities, analyzed, "Sales growth of EV batteries is high, and within the existing medium-to-large batteries, sales of cylindrical EV batteries are also rapidly increasing. Although sales of polarizing films are decreasing, overall profitability is expected to improve due to the effect of exchange rate appreciation."

Although the increase in production capacity was lower compared to competitors, the expansion of cylindrical battery production capacity for EVs and sales growth seem to partially compensate for this. Reflecting the expansion of the profitable Gen5 share and ongoing facility investments in the U.S., sales and operating profit are expected to continue increasing in 2023 and 2024.

Researcher Park stated, "A profitability-focused strategy is expected to lead to higher operating profit margins compared to competitors in 2023-2024, with operating profit estimated at 1.73 trillion KRW this year and 1.98 trillion KRW in 2023. The current stock price is relatively attractive with a price-to-earnings ratio (PER) of 26 times based on 2022 earnings per share (EPS), due to reduced discount factors."

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