[Click eStock] "Samsung SDI Maintains Target Price Considering Business Value Beyond Battery Cells"

Hana Securities maintained its 'Buy' rating and target price of 810,000 KRW for Samsung SDI on the 12th, stating that "although short-term earnings weakness is inevitable, the valuation discount logic (stock price level relative to corporate value) is being resolved, and there is long-term upside potential for the market capitalization to reach 50 trillion KRW."

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On the same day, Kim Hyun-soo, a researcher at Hana Securities, said, "At the current stock price level, Samsung SDI has sufficient long-term upside potential." He added, "When deriving corporate value, the value of businesses other than battery cells must be considered," and "the value of businesses other than battery cells is 14 trillion KRW, and the battery cell business value, considering the resolution of the discount logic, is 37 trillion KRW, totaling approximately 51 trillion KRW in value."

The corporate value of Samsung SDI beyond battery cells is expected to come from cathode materials, subsidiaries, and electronic materials. Researcher Kim explained, "The corporate value derived from the cathode material production capacity (CAPA) produced by subsidiary STM, the equity stakes in EcoPro BM and EcoPro EM, the book value of affiliated companies such as Samsung Display, and the expected net profit of the electronic materials division is about 14 trillion KRW."

He said, "The difference of 15 trillion KRW from the current market capitalization is the value of battery cells, and the discount rate will gradually decrease starting this year." Furthermore, he forecasted, "Conservative investment has so far been the discount logic applied to Samsung SDI," and "Samsung SDI's investment amount this year and next year is expected to increase to about 80% of LG Energy Solution's annual investment amount."

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