KB Securities expects Samsung SDI to expand its circular battery business for electric vehicles to improve its performance.
"Previous prototype batteries were mainly used for small IT devices, but their use has been expanding recently. Demand for power tools and micro-mobility is increasing," KB Securities said. "The prototype batteries for electric vehicles are also increasing rapidly."
KB Securities maintained a target price of KRW 950,000 with a 'buy' rating on Samsung SDI.
Samsung SDI, South Korea's second-largest auto battery industry and the world's fifth-largest, continued to improve its performance in the third quarter due to its strong battery business. This is why Samsung SDI shares are expected to reach KRW 1 million in the domestic securities market.
According to the Financial Supervisory Service on the 16th, Samsung SDI posted 3.44 trillion won in sales in the third quarter, up 11.4 percent from a year earlier. This is because energy and other sales increased 15% to KRW 2.74 trillion during the same period.
Samsung SDI sales in the first and third quarters increased 21.1% (1.6939 trillion won) from the same period last year to 9.7373 trillion won.
During this period, Samsung SDI's operating profit rose 39.7% (106.1 billion won) and 88.6% (376.8 billion won) to 373.5 billion won and 801.9 billion won, respectively.
As a result, Samsung SDI's net profit surged 74.7% (197.9 billion won) and 197% (669.6 billion won) to 420.4 billion won and 858.8 billion won, respectively,
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
