Samsung SDI, DB Securities target price 84won maintained… second-half profit expected

DB Securities said on 7day of the month 13it is maintaining its ‘Buy’ rating and target price of 84won for Samsung SDI and expects a shift to profit in the second half. This signals, from an investor’s perspective, whether earnings improvement lies ahead.

Researcher Ahn Hye-su of DB Securities said 2·4quarter consolidated revenue at 3trillion 8000billion won, up 19% from a year earlier, and said profit would likely be at the break-even point (BEP).

The researcher pointed out that tax refunds for the energy storage system (ESS) business division would help narrow losses. As for the reason the ESS unit, which had been profitable in the second half of last year, posted losses of more than 1100billion won, he cited production at Asian plants and sales mainly to the United States.

The researcher added that even assuming only part of the tariffs are refunded, the resulting figure would still be meaningful.

Regarding the electric vehicle business, he said the key factors for improving utilization rates would be higher operating rates at the European plant and the launch of new projects by Hyundai Motor and Kia.

DB Securities stated that it would maintain its target price and investment rating based on its existing analysis and assumptions.