Brokerage : Kyobo Securities
Analyst : Bo-young Choi
Investment Rating : Buy (Maintained)
Target Price : KRW 420,000 (Raised)
Core Momentum : Following a 4Q25 consensus beat, full-year 2026 operating losses are projected to narrow significantly, while 2027 solid-state battery development and ongoing partnership exploration with robotics makers provide downside support.
📊 1. [Valuation & Key Financial Metrics]
- Investment Rating & Target Price: Buy (Maintained), Target Price KRW 420,000 (Raised by applying 1.8x, the 2022–2023 average P/B, to the 2027F P/B value of KRW 237,662)
- Market Data (As of 2026-02-02): Current Price KRW 356,000, Market Cap KRW 29.04 Trillion, KOSPI 4,949.67pt, KOSDAQ 1,098.36pt, Capital Stock KRW 356.7 Billion, Shares Outstanding Common 80.59 Million / Preferred 1.62 Million, Foreign Ownership (Common) 23.64%
- Key Financial Forecasts (2025.12E → 2026.12E → 2027.12E):
- Revenue: KRW 13.27 Trillion (YoY -20.0%) → KRW 15.29 Trillion (YoY +15.3%) → KRW 15.67 Trillion (YoY +2.5%)
- Operating Profit: KRW -1.72 Trillion (Loss Continued) → KRW -38.0 Billion (Loss Narrowed) → KRW 159.0 Billion (Turnaround)
- Net Profit: KRW -580.0 Billion (Loss Continued) → KRW 150.0 Billion (Turnaround) → KRW 368.0 Billion
- EPS: KRW -7,513 → KRW 1,921 (Turnaround) → KRW 4,736 (YoY +146.5%)
- Operating Margin (OP Margin): -13.0% → -0.2% → 1.0%
- ROE: -3.1% → 0.8% → 2.0%
- PER / PBR: -35.9x / 1.2x → 185.3x / 1.5x → 75.2x / 1.5x
- EV/EBITDA: 168.4x → 23.7x → 21.7x
🚀 2. [Market Opportunities & Business Outlook]
- 4Q25 Review (Consensus Beat & Loss Narrowing): Consolidated Revenue of KRW 3.86 Trillion (YoY +2.8%, QoQ +26.4%) and Operating Loss of KRW -266.2 Billion (Loss continued YoY/QoQ, OPM -7.8%), beating consensus (Revenue KRW 3.5 Trillion, Operating Loss KRW -301.4 Billion). Batteries swung to an operating loss on lower EV shipments, ESS tariffs, and delayed small battery recovery, while electronic materials saw improved semiconductor chemicals partially offset by lower OLED sales.
- 1Q26 Preview (Cylindrical Battery Revenue Growth): Projected Revenue of KRW 3.70 Trillion (YoY +16.4%, QoQ -4.2%) and Operating Loss of KRW -386.2 Billion (Loss continued YoY/QoQ, OPM -10.4%).
- EV: Sluggishness persists reflecting soft downstream EV market demand excluding previous-quarter compensation.
- ESS & Small Batteries: ESS revenue holds flat QoQ due to 1Q off-peak seasonality, while small batteries will grow on seasonal peak demand for cylindrical cells.
- Electronic Materials: Semiconductor DRAM wafer inputs are projected to increase backed by expanding AI server investments.
- Medium-Term Drivers & Downside Support:
- 2026 Loss Reduction: Significant operating loss narrowing projected YoY in 2026.
- Solid-State Development & Robotics: In response to rising market demand, full-scale development for all-solid-state batteries will proceed from 2027, alongside ongoing partnership exploration with various robotics companies, providing solid downside support for shares.
📝 Editor’s Comment (Perspective)
The analyst views Samsung SDI as a battery manufacturer that beat 4Q25 consensus and is set to narrow full-year 2026 operating losses, securing downside valuation support via expanding cylindrical battery revenue, 2027 solid-state battery development, and robotics collaborations. This perspective places primary importance on the sequential revenue recovery in cylindrical cells, company-wide operational improvements in 2026, and future technological positioning in solid-state and robotics, rather than transient 1Q seasonality and broader EV demand headwinds.
To evaluate the ongoing validity of this investment thesis, key monitoring factors include the trajectory of full-year 2026 operating loss narrowing toward the KRW -38.0 Billion target, seasonal revenue growth in small cylindrical cells, and concrete development progress regarding 2027 all-solid-state batteries alongside potential collaboration milestones with robotics companies. These execution developments can be tracked through upcoming quarterly earnings announcements, official company IR releases, and statutory regulatory filings.
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Source: This content has been structured and newly written based on officially disclosed financial facts and data from brokerage reports.
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