[EQUITIES] ‘Samsung SDI boosted by larger batteries’
[THE INVESTOR] Samsung SDI’s medium- and large-sized batteries will lift the whole company’s bottom line, said IBK Securities on June 12, maintaining a “buy” recommendation and raising the target price to 290,000 won (US$269.44) from 250,000 won.
Propelled by the larger battery sector, its revenue in the second quarter will increase 16.7 percent from the previous quarter to 2.23 trillion won and operating profit will almost double to 134.7 billion won. The company’s medium and large batteries business has entered a long-term growth cycle, and will turn to black this year, said analyst Kim Un-ho.
Energy saving system will be the main contributor of its earnings improvement, as the market expands in tandem with new renewable energy industry, and revenue this year will triple from last year. Automobile batteries unit is steadily advancing as well by securing new clients, and sales will top 4 trillion won by 2020, said the analyst adding that profitability of small batteries is stabilizing fast and will maintain growth momentum.
By Hwang You-mee (email@example.com)