[Click e-Stock] "Order Competitiveness Strengthened... Samsung SDI Target Price Raised from 600,000 to 730,000 Won"

On September 15, NH Investment & Securities announced that it is raising its target price for Samsung SDI from 600,000 won to 730,000 won, an increase of 22%.

According to NH Investment & Securities, this upward revision reflects an increased outlook for the energy storage system (ESS) segment, due to enhanced order visibility from Sungrow. In addition, the margin for small-sized batteries in 2027 was raised from 5% to 6% under the assumption of improved product mix, and the discount rate was lowered from 20% to 10% in consideration of new capacity secured in the U.S. and greater order visibility for ESS. The previous day's closing price for Samsung SDI was 532,000 won. This suggests the stock could rise by an additional 37% going forward.

Minwoo Joo, a researcher at NH Investment & Securities, stated, "The valuation discount versus LG Energy Solution, which had persisted for the past four years, has now been resolved." He further analyzed, "With growing competitiveness in securing orders as leading clients increasingly prefer prismatic and cylindrical forms, and with timely response to market demand enabled by liquidating the affiliate SDC stake for funding, there are fundamental reasons for a structural rerating." Joo added, "Further rerating is anticipated in early 2027, once the European Industrial Acceleration Act (IAA) is confirmed and the launch of space-based data centers begins."

Samsung SDI is expected to post third-quarter sales of 3.9 trillion won and operating profit of 260.3 billion won, beating the market consensus of 4 trillion won in sales and 107 billion won in operating profit. Joo explained, "The main reason is expected to be compensation received from the liquidation of the joint venture with General Motors, estimated at around 150 billion won."

By business segment, quarter-on-quarter sales changes are as follows: EV -6%, ESS +38%, and small batteries +6%. Joo noted, "Despite one-off compensation, sales are declining sharply due to destocking of older models following the launch of new BMW vehicles. Ideally, this should have been offset by the Hyundai Ioniq 3 and Kia EV2, but that has not yet been achieved," adding, "It will likely be difficult to maintain the second-half European utilization rate guidance of 70%." For small batteries, a return to profit is anticipated, driven by expansion in battery backup units (BBU) and power tools, as well as improved product mix. A significant growth is also expected for ESS, reflecting carried-over back orders.

This content was produced with the assistance of AI translation services.