Eugene Investment & Securities raises Samsung SDI target price from 500,000 won to 700,000 won

[Financial News] Eugene Investment & Securities raised its target price for Samsung SDI from 500,000 won to 700,000 won on the 30th. It maintained its “Buy” rating.
Hwang Seong-hyeon, an analyst at Eugene Investment & Securities, said, “Samsung SDI’s third-quarter operating profit was 407.8 billion won, 63% above Eugene Investment & Securities’ estimate,” adding, “This was thanks to the AMPC effect (122.5 billion won) and the recognition of customer compensation (300 billion won). The target price increase reflects the earnings surprise, improved visibility for LDES orders, and an improved financial structure following the sale of its SDC stake.”
Eugene Investment & Securities expects Samsung SDI to post fourth-quarter revenue of 3.8 trillion won and operating profit of 271 billion won. It expects robust profitability to continue as AMPC increases with expanded LDES and uninterruptible power supply (UPS) shipments and higher production in the United States.
Samsung SDI’s SPE LFP line in the United States began mass production in early October and is operating normally. Cell shipments began in mid-October, and deliveries of finished SBB products are scheduled to start in December. The small-battery business is expected to continue improving, with cylindrical EV battery sales to customers in the Americas resuming and initial pouch-cell supplies for new smartphones.
Hwang said, “This year, we have secured orders for at least 60 GWh of LDES, primarily for power applications in the United States. Volumes sufficient to keep the SPE and Ulsan lines running at full capacity through 2028 have been confirmed,” adding, “We are now focused on securing volumes for SPE, Ulsan and Synergy Cells (after all of GM’s stake was acquired in August) for 2029 onward. Our goal is to secure additional orders by year-end in an amount exceeding the cumulative total through October.”
He added, “The two additional SPE LFP lines will begin operating in stages in the first quarter of next year. Synergy Cells plans to begin mass production of next-generation LFP for LDES in the second half of 2028 to early 2029.”

[email protected] Kang Gu-gwi Reporter