[Infostock Daily= Reporter An Hoe Hyun] Yuanta Securities said on the 1st that Samsung SDI had high mid and long-term growth potential in the mid and large-sized battery sector. The investment opinion was 'BUY', and the target stock price started to coverage at 590,000 won. Samsung SDI's current share price is 452,500 won based on the closing price on the 31st of last month.
Samsung SDI is paying attention to its earnings growth potential after 2022, when the secondary battery market is expected to grow in earnest due to the entry of the mid and large-sized battery division into full-scale profit. In particular, it is expected that profit contributions will start in earnest due to the normalization of the mid and large-sized battery division in the second half of this year. In the case of batteries for energy storage System(ESS), it is estimated that they turned to surplus in the second quarter of this year, and batteries for electric vehicles(EV) are expected to turn to surplus in the fourth quarter, when supply of European customers will expand.
From next year, EV is expected to grow in Europe and ESS will grow rapidly based on the U.S. market. In the European market, the impact of strengthening environmental regulations and the base effect of 'COVID-19' will be reflected in a combination, and it is expected to grow by about 47% from 450,000 units this year to 660,000 units next year.
"Samsung SDI is expected to enter the full-fledged profit-making section based on the turnaround in the mid and large-sized battery(EV and ESS) sector," said Yuanta Securities and added, "We believe that its future performance will be accompanied by the growth of the global secondary battery market, and that it will have an operating profit generation capacity of 500 billion won per year in the mid and large-sized battery sector alone in 2022."
Reporter An Hoe Hyun ahh@infostock.co.kr
