Brokerage : Kyobo Securities
Analyst : Bo-young Choi
Investment Rating : Buy (Maintained)
Target Price : KRW 880,000 (Raised)
Core Momentum : Repositioning from a component supplier to a critical power solution partner for cloud service providers (CSPs) by capturing rapid growth in AI data center BBU and high-margin UPS demand.
📊 1. [Valuation & Key Financial Metrics]
- Investment Rating & Target Price: Buy (Maintained), Target Price KRW 880,000 (Raised)
- Market Data (As of 2026-04-28): Current Price KRW 680,000, Market Cap KRW 55.33 Trillion, Capital Stock KRW 415.8 Billion, Shares Outstanding Common 80.59 Million / Preferred 1.62 Million, Foreign Ownership (Common) 25.66%
- Key Financial Forecasts (2025.12 → 2026.12E → 2027.12E → 2028.12E):
- Revenue: KRW 13.27 Trillion → KRW 15.35 Trillion (YoY +15.7%) → KRW 19.42 Trillion (YoY +26.5%) → KRW 23.41 Trillion (YoY +20.6%)
- Operating Profit: KRW -1.72 Trillion → KRW 74.0 Billion (Turnaround) → KRW 1.00 Trillion → KRW 2.03 Trillion
- Net Profit: KRW -585.0 Billion → KRW 669.0 Billion (Turnaround) → KRW 698.0 Billion → KRW 1.12 Trillion
- EPS: KRW -8,502 → KRW 92,192 (Turnaround) → KRW 9,622 → KRW 15,362
- Operating Margin (OP Margin): -13.0% → 0.5% → 5.2% → 8.7%
- ROE: -3.2% → 29.5% → 2.7% → 4.1%
- PER / PBR: -31.7x / 1.0x → 7.4x / 1.9x → 70.7x / 1.9x → 44.3x / 1.8x
- EV/EBITDA: 87.0x → 32.8x → 25.3x → 20.2x
🚀 2. [Market Opportunities & Business Outlook]
- 1Q26 Earnings Beat: Revenue reached KRW 3.58 Trillion (YoY +12.6%, QoQ -7.3%) and Operating Profit came in at KRW -155.6 Billion (Loss narrowed, OPM -4.3%), significantly outperforming consensus estimates (Operating Loss KRW -280.9 Billion).
- Small Batteries: Rapid narrowing of operating losses driven by robust demand for high-power cylindrical cells in AI data center BBUs and power tools, supported by a higher mix of tabless cells.
- ESS & One-offs: Growth in high-margin data center UPS volumes and volume compensation from North American OEM clients supported profitability.
- Structural Pivot to Direct CSP Supply in High-Growth BBU Market:
- BBU Market Growth: Cloud adoption is projected to drive a +70% YoY expansion in the BBU market in 2026. Samsung SDI is expected to outpace market growth, leveraging high-power cell technology and non-China supply chain strengths.
- Direct Supply Channel: Transitioning from indirect sales via pack makers and system integrators (SIs) to direct procurement discussions with global Cloud Service Providers (CSPs), enhancing long-term contract visibility and margin profiles.
- Aggressive UPS Line Conversion: Actively converting lines at the Ulsan facility to dedicated UPS battery production to preemptively capture accelerating demand in data center power solutions.
📝 Editor’s Comment (Perspective)
The analyst views Samsung SDI not merely as an indirect battery parts supplier through intermediary pack integrators, but as a strategic data center power solutions partner directly engaging global cloud service providers (CSPs) for multi-year procurement. This perspective emphasizes the structural transformation of earning power—driven by high-power BBU growth (+70% YoY market expansion in 2026) and proactive UPS capacity conversion at the Ulsan plant—over cyclical weakness in pure automotive EV cells.
To evaluate the ongoing validity of this investment thesis, key monitoring factors include the tangible execution of direct supply agreements with leading CSPs, market share expansion within the 2026 high-power BBU segment, and the operational ramp-up and margin delivery of the converted UPS lines at the Ulsan facility. These business developments can be tracked through upcoming quarterly financial announcements, company IR releases, and periodic regulatory 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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