Brokerage : Mirae Asset Securities Analyst : Kim Chul-joong Investment Rating : BUY (Maintained) Target Price : KRW 1,000,000 (Maintained)
Core Momentum : Samsung SDI is expected to expand its market share and turn profitable, driven by securing North American ESS production capacity through the resolution of its GM joint venture and winning prismatic LFP battery orders from European EV makers.
📊 1. [Valuation & Key Financial Metrics]
- Rating & Target Price: BUY (Maintained), Target Price KRW 1,000,000 (Maintained)
- Current Stock Price & Upside: KRW 485,500 (as of August 12, 2026), Upside Potential 106.0%
- Market Capitalization & Shares: Market Cap KRW 39.12 Trillion, Total Shares Outstanding 81 Million, Free Float 72.0%, Foreign Ownership 26.4%
- Financial Performance & Forecast Summary:
- 2024: Revenue KRW 16.59 Trillion, Operating Profit KRW 363.0 Billion (OP Margin 2.2%), Net Profit KRW 599.0 Billion, EPS KRW 8,288, ROE 3.1%, P/E 29.2x, P/B 0.9x
- 2025: Revenue KRW 13.27 Trillion, Operating Loss KRW 1.72 Trillion (OP Margin -13.0%), Net Loss KRW 649.0 Billion, EPS -KRW 8,325, ROE -3.2%, P/B 1.0x
- 2026(F): Revenue KRW 15.84 Trillion, Operating Profit KRW 680.0 Billion (OP Margin 4.3%, Consensus KRW 323.0 Billion), Net Profit KRW 1.37 Trillion, EPS KRW 16,600 (Turnaround to Profit), ROE 5.9%, P/E 29.2x, P/B 1.6x
- 2027(F): Revenue KRW 18.58 Trillion, Operating Profit KRW 1.81 Trillion (OP Margin 9.7%), Net Profit KRW 2.30 Trillion, EPS KRW 27,972, ROE 8.9%, P/E 17.4x, P/B 1.5x
- 2028(F): Revenue KRW 22.71 Trillion, Operating Profit KRW 2.85 Trillion (OP Margin 12.6%), Net Profit KRW 2.29 Trillion, EPS KRW 27,889, ROE 8.1%, P/E 17.4x, P/B 1.3x
🚀 2. [Market Opportunities & Business Outlook]
- North American ESS Capacity Expansion & Order Momentum:
- Acquisition of the existing 36GWh EV line at below book value is anticipated following the dissolution of the GM JV.
- Converting two lines into ESS LFP production is estimated to secure an additional 20–24GWh in production capacity, paving the way for full-scale North American ESS order inflows.
- European EV Market Share Gains with Prismatic LFP:
- The company officially announced during its Q2 earnings conference call that it expects to secure prismatic LFP supply contracts from multiple European OEMs in 2H.
- Major orders from European automakers, including Volkswagen (VW), are expected, backed by line conversions (at least two lines) at the Hungary facility.
- Key Competitive Advantages & Regulatory Tailwinds:
- Key catalysts enabling aggressive order intake and capacity expansion compared to peers include 1) strong financial capital, 2) prismatic form factor competitiveness, and 3) tightening regulatory measures against Chinese suppliers (such as OBBBA and IAA).
📝 Editor’s Comment (Perspective)
The analyst views Samsung SDI not merely as a follower burdened by the industry-wide battery slowdown, but as an early mover positioned to capture significant market share across the North American ESS and European EV sectors through its prismatic form factor competitiveness and timely production capacity restructuring. The analysis places greater significance on the strategic shift toward LFP and ESS line conversions, which allows the company to capitalize on tightening anti-China regulatory frameworks and outpace global competitors in new order acquisition.
To determine whether this investment thesis materializes going forward, key verification points include monitoring the actual timeline for converting 20–24GWh of North American ESS production lines following the GM JV resolution, tracking subsequent contract announcements, and confirming the finalized order scale for prismatic LFP batteries from major European OEMs such as Volkswagen alongside line conversion progress at the Hungary facility. These developments can be verified through upcoming quarterly earnings releases, official IR presentations, and regulatory disclosures.
📢 Disclaimer & Source
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