] Battery maker Samsung SDI saw its stock price hit a new annual high of 166,000 won (US$148) in intraday trading on May 29 on expectations that it will return to profit in the April-June period.
Market analysts have offered positive outlook on the firm’s profits in the second quarter, many of whom are forecasting that Samsung SDI will finally be able to achieve a turnaround after posting losses for nine consecutive quarters.
“Samsung SDI will likely post an operating profit of 16.8 billion won in the second quarter, higher than previous estimates,” said Park Kang-ho, an analyst from Daeshin Securities, raising the target stock price from 170,000 won to 200,000 won.
The company posted an operating loss of 67.3 billion won in the first quarter, up 1.1 percent from the same period last year.
He forecast that the firm’s quarterly revenue would come in at 1.4 trillion won, up 13.5 percent on-year, attributing the anticipated profit increase to the robust sales of batteries for Samsung Electronics’ Galaxy S8 and S8 Plus smartphones.
The shares have been on the rise in recent weeks apparently shaking off concerns over the quality of its smartphone batteries and its faltering battery business in the Chinese electric vehicle segment.
SDI’s faulty smartphone batteries, along with batteries made by Hong Kong-based Amperex Technology Ltd., or ATL, were pointed out as the main cause of the fire and explosion cases of Samsung Electronics’ Galaxy Note 7.
The Korean battery firm has been hit hard by the Chinese government’s recent subsidy rules, which are more favorable to Chinese battery companies.
SDI's shares closed at 165,000 won on May 29, up 3.45 percent.
By Kim Young-won (firstname.lastname@example.org