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The Korea Herald
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THE INVESTOR
March 29, 2024

Stocks & Bonds

[EQUITIES] ‘Samsung SDI to rally from growing battery demand’

  • PUBLISHED :September 04, 2018 - 10:03
  • UPDATED :September 04, 2018 - 10:03
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[THE INVESTOR] Samsung SDI’s earnings will improve on the back of growing demand for lithium-ion batteries, said Eugene Investment and Securities on Sept. 4, maintaining a “buy” recommendation and raising the target price to 300,000 won (US$269.49) from 260,000 won.





In line with technological advance, usage of higher-margin lithium-ion batteries is expanding, while prices of raw materials such as cobalt and lithium are declining, brightening the mid- to long-term outlook for the sector. As its larger battery division turns to black, the company is beginning to grow systematically. Its operating profit this year will soar 415 percent from last year to 602.1 billion won, said analyst No Gyeong-tak. 

China accounts for 51 percent of global electric vehicle market, and Korean battery makers will tackle the market in earnest from 2020, when sales of EVs are expected to rise to 1.52 million. By 2025, the number will surge to 5.12 million, said the analyst adding that investors should keep an eye on Korean battery manufacturers’ growth and profits improvement. 

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

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