Samsung Group Stocks Reshuffled: Electro-Mechanics and SDI Surge While Biologics Falls

Samsung Electro-Mechanics Rises from 23rd to 11th in a Month, Surpassing Kia
Samsung SDI Climbs from 22nd to 14th, Marks 52-Week High
Samsung Biologics Falls Due to Union Issues
Samsung Group Now Represents Half of Top 20 Market Cap Stocks

As the KOSPI continues its record-breaking rally, surpassing the 6,700 mark during intraday trading, shifts are also occurring in the market capitalization landscape of Samsung Group stocks. While Samsung Electro-Mechanics and Samsung SDI have seen significant increases in their stock prices and thus in their market capitalization over the past month, Samsung Biologics, whose stock has struggled due to labor union issues, has dropped in the rankings. Stocks benefiting from artificial intelligence (AI) are coming into the spotlight.

According to the Korea Exchange on April 29, Samsung Electro-Mechanics closed at 839,000 won on the previous day, up 5.67%. The price reached as high as 845,000 won during the session, marking a new all-time high. Thanks to this rise, Samsung Electro-Mechanics surpassed Kia to secure the 11th spot in market capitalization.

Samsung SDI also hit a 52-week high, climbing to 690,000 won during intraday trading and closing at 680,000 won, up 7.09%. Samsung SDI's market capitalization ranking has recently climbed to 14th place.

Just a month ago, both Samsung Electro-Mechanics and Samsung SDI were outside the top 20 in market capitalization. However, as their stock prices soared over the past month, their rankings have jumped accordingly. Samsung Electro-Mechanics rose by 83.59%, while Samsung SDI increased by 71.50% during this period.

Expectations for improved earnings have driven the rise in their stock prices. Samsung Electro-Mechanics, which is set to announce its first-quarter results for this year on April 30, is expected to meet market forecasts. Changmin Lee, a researcher at KB Securities, stated, "Samsung Electro-Mechanics' first-quarter earnings are projected to meet consensus, with revenue up 12% year-on-year to 3.07 trillion won and operating profit rising 35% to 271.4 billion won." He added, "However, given that a retirement benefit provision of around 60 billion won is expected to be reflected due to a Supreme Court ruling, the underlying earnings, excluding this one-off factor, are likely to significantly exceed market expectations."

Samsung Electro-Mechanics is expected to enjoy explosive earnings growth due to the AI supercycle and a resulting shortage in component supply. Lee commented, "With supply shortages for key AI components such as multilayer ceramic capacitors (MLCCs) and packaging substrates, the resulting benefits are being rapidly reflected in the company's performance, leading to expectations of explosive earnings growth." He raised the target price for Samsung Electro-Mechanics by 75%, from 600,000 won to 1,050,000 won.

On April 28, Samsung SDI announced its first-quarter results, which showed a significant improvement. Samsung SDI posted first-quarter revenue of 3.5764 trillion won and an operating loss of 155.6 billion won. Revenue increased by 12.6% year-on-year, and the operating loss narrowed by 64.2%. Net profit for the first quarter was 56.1 billion won, marking a return to profitability.

Jeonghun Jang, a researcher at Samsung Securities, noted, "Samsung SDI's first-quarter results exceeded consensus (which expected an operating loss of 257.6 billion won)," adding, "Operating losses were sharply reduced compared to the previous quarter and the same period last year, thanks to increased sales of locally produced energy storage systems (ESS) in the United States and expanded sales of high-value cylindrical batteries for power tools." He further stated, "From the fourth quarter, North American LFP (lithium iron phosphate) battery ESS is expected to begin full-scale operation, and sales of volume electric vehicle models for Europe are likely to drive a return to profitability in the second half of the year."

In contrast, Samsung Biologics has dropped in the market capitalization rankings. Samsung Biologics, which was ranked 6th a month ago, has fallen to 10th place. Over the past month, its stock price declined by 5.11%. Its market capitalization, which stood at around 74 trillion won, decreased to approximately 69 trillion won. Among the top 20 stocks by market capitalization, Samsung Biologics was the only Samsung Group company to see a decrease. This was due to negative impacts on its share price from union issues and other factors.

Seungyeon Han, a researcher at NH Investment & Securities, commented on Samsung Biologics, saying, "The somewhat sluggish stock performance has continued. A rebound in share price will depend on new orders, upward guidance revisions, and expansion of production capacity. However, risks related to union wage negotiations and potential strikes should also be taken into account."

Among the top 20 KOSPI stocks by market capitalization, the number of Samsung Group companies increased from five to seven over the past month, with their combined market cap share rising from 47.65% to 49.06%.

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