April 19, 2024

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[THE INVESTOR] Samsung SDI will continue outperforming in the third quarter, said Daishin Investment and Securities on Aug. 27, maintaining a “buy” recommendation and 310,000 won (US$278.28) target price. 

The overall supply of battery makers is falling short of rising demand. The price of cylinder-shaped batteries, in particular, which Samsung SDI has secured a major share, is increasing while supply to global polymer battery clientele is expanding as well. Revenue from energy-saving systems is growing fast, and product portfolio of batteries for electric vehicles is improving, bolstering operating profit rise in larger battery sector. The Profitability of electronic materials will also be high in the third quarter, said analyst Park Gang-ho.

It is likely that Korean manufacturers will again qualify for Chinese government’s subsidies next year, and regulation may ease from US-China trade conflict and global expansion of Chinese battery makers. Samsung SDI’s operating profit in the third quarter will soar 248 percent on-year to 208.8 billion won, 19 percent higher than market expectations, the analyst estimated. 

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