Samsung SDI shares were strong early on the 2nd. Analysts in the securities industry said robust earnings are expected based on the importance of energy storage system (ESS) technology, which appears to have driven buying.
As of 10:13 a.m. that day, Samsung SDI was trading at 450,500 won on the Korea Exchange, up 18,500 won (4.28%) from the previous session.
Lee Hyeon-uk, an analyst at IBK Investment & Securities, said, "Battery shipments to North America are in a tough spot, but shipments to BMW and Volkswagen (VW) driven by the acceleration of the European EV mix are estimated to improve versus prior expectations."
IBK Investment & Securities forecast Samsung SDI's first-quarter revenue and operating loss at 3.584 trillion won and 212 billion won, respectively. That beats the market consensus of 3.4 trillion won in revenue and a 275 billion won operating loss.
The analyst said, "Shipments on the North American ESS nickel-cobalt-aluminum (NCA) line are solid and are expected to be similar to the prior quarter," adding, "For small batteries, despite weak U.S. housing, the increase in data center construction is boosting shipments for professional power tools, and inventories are expected to reach appropriate levels."
For North American ESS, the fact that long-term volumes have already been secured was also viewed positively.
The analyst said, "For the ESS business, North American volumes are estimated to have already been booked through 2028, securing a stable foundation for growth."