[Click eStock] "Samsung SDI, Focus on North America Subsidiary... Gen5 Battery Sales Expansion"

Kiwoom Securities Report

[Asia Economy Reporter Kwangho Lee] Kiwoom Securities analyzed on the 16th that the recent stock price adjustment in the battery sector was partly due to concerns about Tesla-driven Chinese electric vehicle demand and competitor supply issues, but Samsung SDI has little direct connection to these concerns. The investment opinion 'Buy' and the target price of 900,000 KRW were both maintained. The current stock price as of the 15th is 665,000 KRW.

Ji-san Kim, an analyst at Kiwoom Securities, emphasized, "It is necessary to pay attention to the active moves in automotive batteries, such as the expansion of the North American joint venture and orders for 46Φ cylindrical batteries." He added, "Next year will be a year preparing for qualitative leaps such as 46Φ, NMx, and Gen 6."

He said, "The Q4 operating profit estimate is slightly lowered from 594.9 billion KRW to 577.6 billion KRW," adding, "This reflects the impact of the strong Korean won, and it is necessary to keep in mind the possibility of one-time costs such as year-end quality provisions."

He continued, "Although concerns about European electric vehicle demand persist for automotive batteries, the premium demand that Samsung SDI focuses on is favorable, and sales will expand mainly around Gen 5 batteries."

He also stated, "ESS growth will be driven by power projects in the Americas," and "Although demand for cylindrical batteries in power tools and micromobility is slowing, demand for EVs will offset this." Additionally, he added, "In electronic materials, polarized films are rebounding as inventory burdens ease, and OLED materials will show strength due to the effect of entering new platforms."

Analyst Kim said, "We expect active moves in automotive batteries in the new year," and explained, "As global OEMs pursue diversification of battery suppliers, the competitiveness of high-output, high-density prismatic batteries will be highlighted, and by expanding North American joint venture partners, Samsung SDI plans to enhance its response to the IRA," expressing expectations for strengthened positioning.

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