[Click eStock] "Samsung SDI, Earnings Upward Revision... Operating Profit Expected to Surge 60% This Year"

[Asia Economy Reporter Ji Yeon-jin] DB Financial Investment announced on the 5th that it is raising its operating profit forecast for Samsung SDI in the third quarter of this year from 466 billion KRW to 506.7 billion KRW, an 8.7% increase.

Researcher Kwon Seong-ryul of DB Investment Securities emphasized, "Overall, batteries are performing better than expected, while electronic materials are underperforming compared to expectations," adding, "Sales of medium and large batteries in the third quarter are increasing by more than 15%, and profitability is also improving." It is expected that the recovery of plug-in hybrid electric vehicle (PHEV) volumes and the increasing proportion of next-generation batteries Gen5 will drive performance. Additionally, the effect of price increases for energy storage systems (ESS) and the rise in exchange rates could further contribute to strong results.

Researcher Kwon explained, "Small batteries are leading performance improvements with a 20% increase in sales due to higher volumes of cylindrical batteries for EVs and improved profitability, while electronic materials are facing worse-than-expected conditions in polarizing films due to a downturn in the display industry."

He added, "Clearly, the acceleration in medium and large battery sales and a certain level of profit increase make the overall company performance improvement stand out. The share of BEV batteries in automotive batteries has surpassed 50%, and with the continuous release of new EV models adopting Gen5, the Gen5 proportion is expected to rise to the mid-20% range in the fourth quarter of this year."

Samsung SDI's sales are projected to increase by 45% this year, with operating profit expected to grow by more than 60%, marking the highest growth forecast among major IT companies.

Researcher Kwon stated, "Unlike other major IT stocks that are rushing to lower their earnings forecasts, Samsung SDI is revising its operating profit upward by 4.1% and 5.1% for this year and next year, respectively," adding, "Compared to other secondary battery companies, its valuation attractiveness is sufficient."

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