Corporate Logo(source: samsungsdi.com)
NH Investment & Securities Co.,Ltd raised its target price for Samsung SDI (006400) to 410,000 won from 250,000 won on October 29, highlighting the company’s growing potential and profit contribution from its energy storage system (ESS) business.
As of 9:29 a.m., Samsung SDI was trading at 328,750 won, up 16,750 won, or 5.37%, from the previous session.
Analyst Joo Min-woo said, “While we revised down our earnings forecast to reflect weakness in the electric vehicle (EV) segment, we raised the valuation multiple from 11 times to 16 times, factoring in capacity expansion in ESS and the company’s solid long-term growth visibility.” He added, “We also applied a 10% premium to the 2023–2024 average multiple to reflect the rising value of ESS as a new growth driver.”
ESS has been gaining prominence as a core infrastructure component for artificial intelligence (AI) data centers, driving its increasing market value.
“The company announced plans to expand annual ESS production capacity at its North American plant from the current 19GWh to 30GWh by the end of next year,” Joo said. “We expect ESS to account for 63% of total operating profit by 2027, surpassing EV batteries. Investors should focus more on the medium- to long-term growth potential of ESS rather than short-term EV weakness.”
On October 28, Samsung SDI reported an operating loss of 591.3 billion won on a consolidated basis for the third quarter, marking a return to the red from a year earlier and significantly missing the market consensus, which had projected losses in the 300 billion won range.
*[KOSPI] Samsung SDI(006400) is an affiliate of Samsung Electronics and consists of two business divisions: the Energy Solution division, which produces and sells lithium-ion secondary batteries in mid-to-large-sized or small-sized batteries, and the Electronic Materials division, which produces and sells semiconductor and display materials. The market capitalization is 25.143 trillion won (as of October 28, 2025, closing price).
Corporate Logo(source: samsungsdi.com)
NH Investment & Securities Co.,Ltd raised its target price for Samsung SDI (006400) to 410,000 won from 250,000 won on October 29, highlighting the company’s growing potential and profit contribution from its energy storage system (ESS) business.
As of 9:29 a.m., Samsung SDI was trading at 328,750 won, up 16,750 won, or 5.37%, from the previous session.
Analyst Joo Min-woo said, “While we revised down our earnings forecast to reflect weakness in the electric vehicle (EV) segment, we raised the valuation multiple from 11 times to 16 times, factoring in capacity expansion in ESS and the company’s solid long-term growth visibility.” He added, “We also applied a 10% premium to the 2023–2024 average multiple to reflect the rising value of ESS as a new growth driver.”
ESS has been gaining prominence as a core infrastructure component for artificial intelligence (AI) data centers, driving its increasing market value.
“The company announced plans to expand annual ESS production capacity at its North American plant from the current 19GWh to 30GWh by the end of next year,” Joo said. “We expect ESS to account for 63% of total operating profit by 2027, surpassing EV batteries. Investors should focus more on the medium- to long-term growth potential of ESS rather than short-term EV weakness.”
On October 28, Samsung SDI reported an operating loss of 591.3 billion won on a consolidated basis for the third quarter, marking a return to the red from a year earlier and significantly missing the market consensus, which had projected losses in the 300 billion won range.
*[KOSPI] Samsung SDI(006400) is an affiliate of Samsung Electronics and consists of two business divisions: the Energy Solution division, which produces and sells lithium-ion secondary batteries in mid-to-large-sized or small-sized batteries, and the Electronic Materials division, which produces and sells semiconductor and display materials. The market capitalization is 25.143 trillion won (as of October 28, 2025, closing price).