Brokerage : Hana Securities
Analyst : Hyun-soo Kim, Ji-won Hong (RA)
Investment Rating : BUY (Maintained)
Target Price : KRW 469,000 (Raised)
Core Momentum : Pursuing the monetization of its Samsung Display (SDC) stake to secure up to KRW 11 Trillion in liquidity, restoring the current ratio and eliminating valuation discounts driven by past capital constraints.
📊 1. [Valuation & Key Financial Metrics]
- Investment Rating & Target Price: BUY (Maintained), Target Price KRW 469,000 (Raised by applying 37x, the top of its historical 5-year 24M Fwd P/E band, to 2027F controlling net profit of ~KRW 1.0 Trillion)
- Market Data (As of 2026-02-19): Current Price KRW 408,000 (Upside Potential 15.0%), Market Cap KRW 32.88 Trillion, KOSPI 5,677.25pt, Shares Outstanding 80,585.5 Thousand, Foreign Ownership 24.18%
- Key Financial Forecasts (2025F → 2026F):
- Revenue: KRW 13.27 Trillion → KRW 15.56 Trillion
- Operating Profit: KRW -1.72 Trillion → KRW -737.4 Billion (Loss Narrowed)
- Pre-tax Profit: KRW -1.36 Trillion → KRW -527.3 Billion (Loss Narrowed)
- Net Profit: KRW -649.5 Billion → KRW -332.8 Billion (Loss Narrowed)
- EPS: KRW -8,326 → KRW -4,049 (Loss Narrowed)
- YoY Growth: Loss Continued → Loss Continued
- PER / PBR: -32.37x / 1.03x → -100.77x / 1.59x
- EV/EBITDA: 457.75x → 49.51x
- ROE: -3.17% → -1.58%
🚀 2. [Market Opportunities & Business Outlook]
- Up to KRW 11 Trillion Cash Inflow via SDC Stake Monetization:
- Fair Value Assessment: Based on SDC’s projected average operating profit of KRW 4–5 Trillion over the next two years, applying Chinese peer BOE’s P/E multiples (15.5x for 2026F, 12.9x for 2027F) yields an SDC fair value of KRW 65–70 Trillion. Reflecting Samsung SDI’s 15.2% equity stake, the current book value (~KRW 10.1 Trillion as of 3Q25) is considered fair.
- Potential Inflow: Benchmarking BOE’s P/B multiples (1.10x for 2026F, 1.04x for 2027F), monetizing the stake at ~1.1x book value would yield potential cash proceeds of up to ~KRW 11 Trillion upon a full stake sale.
- Balance Sheet Optimization & FCF Inversion:
- Leverage & Liquidity: Assuming ~KRW 11 Trillion in proceeds with unchanged debt, the debt-to-equity ratio improves from 79.3% (end-4Q25) to the mid-50% range. Current assets expand from KRW 8.7 Trillion to ~KRW 19.7 Trillion, lifting the current ratio from 0.89x to ~2.0x.
- Free Cash Flow (FCF): FCF is expected to swing from an estimated KRW -500.0 Billion to short-term surplus levels of ~KRW +10.0 Trillion upon recognizing one-off proceeds.
- Valuation Multiple Re-rating: Although equity-method gains will diminish, securing massive cash balances eliminates the historical valuation discount relative to LG Energy Solution (previously driven by capital scarcity and delayed investment timing), triggering significant multiple expansion.
📝 Editor’s Comment (Perspective)
The analyst views Samsung SDI as a balance-sheet turnaround story unlocking massive liquidity (up to ~KRW 11 Trillion) through the pursued monetization of its Samsung Display (SDC) stake, effectively neutralizing historical valuation discounts relative to industry peers. This perspective emphasizes that the structural liquidity recovery (current ratio rising from 0.89x to ~2.0x) and enhanced investment capacity outweigh the minor accounting headwinds associated with reduced equity-method gains.
To evaluate the ongoing validity of this investment thesis, key monitoring factors include the finalization of terms and execution timelines for the SDC stake monetization, the deployment pace of secured capital into new battery manufacturing lines, and visible balance-sheet deleveraging alongside FCF expansion. These execution milestones can be tracked through upcoming regulatory disclosures, official company IR presentations, and periodic financial filings.
📢 Disclaimer & Source
Source: This content has been structured and newly written based on officially disclosed financial facts and data from brokerage reports.
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