[Infostock Daily= Reporter An Hoe Hyun] Hanwha Investment & Securities predicted that Samsung SDI will post operating profit of more than 1 trillion won next year following its third-quarter earnings this year, which exceed market expectations. We maintain investment opinion 'BUY' and raise target stock price from 450,000 won to 560,000 won.
Samsung SDI's 3Q sales are expected to reach 2.9 trillion won and operating profit to reach 210.5 billion won, up 2.5% and 14.2%, respectively.
The fundamentals of the medium and large battery business were noted. "The demand for circular batteries, which was not good in the first half of the year, recovered, the operating deficit fell sharply as automobile stop sales increased by 28% from the previous quarter, and the demand for polarizing films surged due to strong TV demand, which improved the profitability of the electronic materials sector," the company explained, adding, "It has proven that the company's profit stamina is greatly improved as the mid- to large-sized battery business gradually enters the main track."
The company expects its operating profit to rise by 1 trillion won next year, and the operating margin of mid- to large-sized batteries is expected to reach 5-7% within the next two to three years. "As automobile battery sales exceed1 trillion won in the quarter and exceed the break-even point, the company's quarterly operating profit will reach more than 200 billion won," the company analyzed.
Reporter An Hoe Hyun ahh@infostock.co.kr