Hyundai Motor Securities on the 25th said Samsung SDI is expected to secure investment funds and improve its financial structure by selling its equity stake in Samsung Display (SDC). It raised its investment opinion to "Buy" from the previous "Marketperform," and lifted the target price to 530,000 won from 190,000 won. As of the prior trading day, Samsung SDI's closing price was 421,500 won.
Kang Dong-jin, an analyst at Hyundai Motor Securities, said, "As the likelihood of applying the All-solid-state Battery, now being readied for mass production in 2027, to robots increases, expectations are growing," and noted, "A turnaround is expected in small batteries on the back of backup unit (BBU) growth."
In particular, for the secondary battery business, it said the factors behind the undervaluation are expected to fade thanks to leadership in All-solid-state Battery technology, increased shipments to the North American energy storage system (ESS) market, and a recovery in cylindrical battery profitability driven by downsizing of the Hungary plant and BBU growth.
Kang also said, "With the plan to sell the Samsung Display equity stake reported to the board of directors, the value of the holding is expected to be realized."
Meanwhile, last year Samsung SDI posted sales of 13.2667 trillion won and an operating loss of 1.7224 trillion won. Sales fell 20% from a year earlier and the company swung to a loss. However, the fourth-quarter operating loss narrowed to 299.2 billion won from 591.3 billion won in the previous quarter.