Brokerage : Shinhan Securities
Analyst : Jin-myung Lee, Myung-joo Kim
Investment Rating : BUY (Maintained)
Target Price : KRW 620,000 (Lowered)
Core Momentum : Offsetting EV demand uncertainties through robust growth in US utility/UPS ESS and high-power small battery BBUs, initiating a structural turnaround in core operational earnings.
📊 1. [Valuation & Key Financial Metrics]
- Investment Rating & Target Price: BUY (Maintained), Target Price KRW 620,000 (Lowered by 11% to reflect downward adjustments in global peer valuation multiples)
- Market Data (As of 2026-07-30): Current Price KRW 358,500 (Upside Potential 72.9%), Market Cap KRW 28.89 Trillion, Shares Outstanding 80.6 Million, Foreign Ownership 26.3%
- Key Financial Forecasts (2025 → 2026F → 2027F):
- Revenue: KRW 13.27 Trillion → KRW 16.12 Trillion → KRW 20.02 Trillion
- Operating Profit: KRW -1.72 Trillion → KRW 357.0 Billion (Turnaround) → KRW 1.62 Trillion
- Net Profit (Controlling): KRW -649.4 Billion → KRW 855.1 Billion (Turnaround) → KRW 2.08 Trillion
- ROE: -3.2% → 3.9% → 8.5%
- PER / PBR: -x / 1.0x → 34.1x / 1.3x → 14.2x / 1.2x
- EV/EBITDA: 87.1x → 15.5x → 8.7x
🚀 2. [Market Opportunities & Business Outlook]
- 2Q26 Earnings Review: Revenue reached KRW 3.8 Trillion (QoQ +5%) and Operating Profit stood at KRW 203.8 Billion (Turnaround QoQ), significantly beating consensus estimates (KRW -27.3 Billion). Even excluding one-off tariff refunds, the company achieved core profitability, confirming an earlier-than-expected earnings trough.
- Segment Breakdown & Growth Drivers:
- Mid-to-Large Batteries (EV & ESS): Achieved both top-line growth and quarterly profit turnaround. In EV, despite reduced volume in existing programs, losses narrowed thanks to European sales growth, European shipments from US JV capacity, and higher AMPC. In ESS, despite the postponement of domestic project deliveries to 3Q26, margins improved due to strong US utility and UPS demand alongside tariff refunds.
- Small Batteries: Revenue rose 10% QoQ with reduced losses, supported by solid demand for Battery Backup Units (BBU) and power tools. Profit contribution is set to expand via high-power product mixes.
- Electronic Materials: Revenue stood at KRW 249.8 Billion (QoQ +13%) and Operating Profit reached KRW 44.5 Billion (QoQ +112%), driven by semiconductor materials and foldable film expansion.
- 2H26 Outlook: Sequential top-line and margin improvements will be led by robust US utility/UPS demand, volume ramp-up of US LFP ESS in 4Q26, and expanding AMPC benefits.
📝 Editor’s Comment (Perspective)
The analyst views Samsung SDI not as a battery maker restricted by cyclical EV end-market headwinds, but as a diversified energy solutions provider effectively neutralizing EV uncertainties through rapid expansion in US utility-scale/UPS ESS and high-power BBU small batteries. This perspective emphasizes the passing of the fundamental operational bottom and the strengthening of underlying earning power, marked by core profitability even after stripping out non-recurring tariff gains.
To assess the forward trajectory of this investment thesis, key monitoring factors include the commercial production timeline of US LFP ESS in 4Q26, new order momentum across North American ESS and European EV segments, and the continuous sustainability of underlying operating profitability in the absence of one-off credits. These milestones can be verified through future quarterly financial results, official IR communications, and regulatory business filings.
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