"Samsung SDI Should Be Reassessed as a Power Infrastructure Company," iM Securities Says

[Financial News] An analysis has found that Samsung SDI, whose valuation had been centered on electric vehicles, should be reassessed to reflect the growth potential of the power infrastructure industry.
On the 23rd, iM Securities said of Samsung SDI, "Its earnings improvement, led by the energy storage system (ESS) business, is becoming increasingly evident."
iM Securities forecast that Samsung SDI would post revenue of 4.1 trillion won and operating profit of 285 billion won in the third quarter, significantly exceeding market expectations of 4 trillion won in revenue and 115.9 billion won in operating profit. The firm said earnings would be boosted by compensation payments resulting from automakers' failure to meet minimum purchase volumes, despite the decline in the won-dollar exchange rate.
Jeong Won-seok, a researcher at iM Securities, explained, "Even excluding one-off factors, the improvement led by ESS is clearly evident."
By business segment, ESS revenue is expected to increase by about 32% from the previous quarter, driven by the full-scale supply of project volumes in South Korea's centralized contract market. The increase is expected to accelerate further in the fourth quarter, when U.S. LFP production lines begin full-scale operations.
Revenue from cylindrical cells is also expected to rise by about 6% and turn profitable as demand grows for batteries used in power tools and battery backup units (BBUs) for AIDC applications. The electronic materials division is likewise expected to improve gradually, supported by favorable semiconductor industry conditions and the impact of new product launches by major customers. In contrast, automotive battery revenue is projected to decline by about 3% due to the effects of inventory adjustments by a major customer.
Samsung SDI's expansion in North America is another area drawing attention. On the 11th of last month, Samsung SDI announced that it would acquire the entire stake in Synergy Cell, a battery joint venture it co-owned with GM, and convert it into a wholly owned operation. The move will give the company its first large-scale production facility in North America under sole ownership.
Jeong emphasized, "As U.S. ESS demand increases with the expansion of renewable energy generation and the acceleration of AIDC investment, stricter regulations on Chinese supply chains are creating a favorable environment for Korean companies. As ESS expands beyond storage systems linked to renewable energy to become key infrastructure supporting AIDC power supplies, it needs to be reassessed beyond its existing electric vehicle-centered valuation."
Meanwhile, Samsung SDI's annual operating profit is projected to rise from approximately 570 billion won in 2026 to 1.396 trillion won in 2027 and 2.384 trillion won in 2028.
[email protected] Kim Dong-chan Reporter