Battery stocks rise across the board; Samsung SDI gains 3% [Stock NOW]

[Financial News] Battery stocks are broadly higher in early trading amid growing demand for energy storage systems (ESS) and expectations of improved earnings.
As of 9:31 a.m. on the 19th, Samsung SDI was trading at 547,000 won, up 17,000 won (3.21%) from the previous trading day. It rose as high as 553,000 won during the session.
LG Energy Solution was trading at 412,500 won, up 9,500 won (2.36%) from the previous trading day. Its intraday high was 416,000 won. POSCO Future M was also trading at 173,900 won, up 2,300 won (1.34%).
Amid growing demand for ESS batteries, particularly from AI data centers, expectations that domestic battery makers’ third-quarter earnings will improve are thought to have influenced investor sentiment.
LG Energy Solution previously announced provisional third-quarter revenue of 9.6434 trillion won, up 59.0% from a year earlier, and operating profit of 756 billion won, up 25.7%. Both revenue and operating profit were quarterly records.
Even excluding the estimated 416.9 billion won in Advanced Manufacturing Production Tax Credit (AMPC) benefits under the U.S. Inflation Reduction Act (IRA) reflected in operating profit, the company posted operating profit of 339.1 billion won. The expansion of ESS production in North America and improved sales of EV batteries are believed to have boosted results.
Securities firms expect Samsung SDI also to have returned to profitability in the third quarter, with operating profit in the 200-billion-won range, buoyed by growth in its ESS business and increased sales of EV batteries. Samsung SDI is scheduled to announce its finalized third-quarter results on the 29th, and LG Energy Solution on the 3rd of next month.
[email protected] Lee Jeong-hwa Reporter