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Photo = Samsung SDI |
[Alpha Biz= Reporter Kim Sangjin] On the 30th, Samsung Securities stated that Samsung SDI's third-quarter performance is expected to fall short of the market consensus (the average estimates of securities firms). Despite this, the firm maintained its "Buy" rating and a target price of 460,000 KRW.
Samsung Securities noted that "the profitability of the mid-to-large EV (electric vehicle) segment, which accounts for nearly 50% of sales, is expected to decline by about 2 percentage points." This is due to a double-digit increase in shipment volumes compared to Q2, but with a roughly 10% drop in selling prices, which put pressure on earnings.
The brokerage estimated Samsung SDI's Q3 revenue and operating profit at 4.6 trillion KRW and 1.543 trillion KRW, respectively. The operating profit is projected to be 14.0% lower than the market estimate of 1.795 trillion KRW.
Despite this, Samsung Securities observed that Samsung SDI's stock has rebounded by 8.5% this month, confirming strong support at a price-to-book ratio (PBR) of 1, which equates to around 300,461 KRW per share. The firm cited the company's relatively attractive valuation compared to peers, its better profitability, and the early operation of its North American battery joint venture in Q4 as reasons to expect positive movement in the stock.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
