April 20, 2024

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[THE INVESTOR] Samsung SDI posted an earnings surprise in the second quarter, said KTB Investment and Securities on July 31, maintaining a “buy” recommendation and raising the target price to 290,000 won (US$259.62) from 260,000 won.

Its revenue came in at 2.25 trillion won and operating profit 152.8 billion won, beating market expectations. Its fundamentals will advance in the mid- to long-term as market conditions across sectors remain strong, said analyst Kim Yang-jae.

The electronic materials division will be boosted by increasing sales. Propelled by cylinder-shaped batteries, its smaller battery unit will grow over 10 percent every year while energy savings system will gain steadily as overseas markets expand. In addition to the earnings improvement, profits of Samsung Display, in which it owns a stake, will recover and next year’s earnings per share growth rate will be 56 percent, the analyst noted.

By Hwang You-mee (glamazon@heraldcorp.com)