Hanwha Investment & Securities said on the 7th that Samsung SDI lacks a clear driver for gains this year outside of energy storage systems (ESS). It maintained a Buy rating but cut the target price to 350,000 won from 360,000 won. Samsung SDI's closing price the previous day was 277,000 won.
Hanwha Investment & Securities estimated that Samsung SDI posted revenue of 3.7 trillion won and an operating loss of 396.8 billion won in the fourth quarter of last year (October–December). Excluding the Advanced Manufacturing Production Credit (AMPC), the operating loss is estimated to increase to 461.6 billion won. Previously, the market expected Samsung SDI to report an operating loss of 279.2 billion won.
Lee Yong-wook, an analyst at Hanwha Investment & Securities, said, "About 100 billion won in deferred compensation is expected to be received in the fourth quarter, but meaningful profitability improvement was likely limited due to one-off expense recognition at year-end," and noted, "In the prismatic electric vehicle (EV) segment, weak demand from major European clients is continuing, but in the ESS segment, shipments of NCA ESS for STLA JV have entered full swing, with about 1 gigawatt-hour (GWh) shipped in the fourth quarter."
The analyst judged that aside from ESS this year, there is a lack of clear upside momentum. The recovery timing for the automotive battery sector is also being delayed.
The analyst said, "In the United States, EV strategies are retreating, and in Europe, the adoption of mid- to low-priced batteries is increasing to expand EV sales under the burden of CO₂ emission regulations," adding, "Unless price competitiveness is secured, recovering European market share in the short term will not be easy."
At the same time, the firm presented this year's revenue estimate for Samsung SDI at 16 trillion won and an operating loss of 619.5 billion won. Excluding AMPC, the loss is projected to increase to around 1.3 trillion won.