Corporate Logo(source: samsungsdi.com)
NH Investment & Securities said on September 9 that while Samsung SDI (006400) is expected to return to profitability next year, investor expectations should be lowered. The brokerage maintained its “Buy” rating but reduced its target price by 4% from 260,000 won to 250,000 won. The previous day’s closing price was 199,900 won.
Analyst Joo Min-woo noted, “The market consensus for 2026 operating profit is 647 billion won, but our estimate is 412.7 billion won. Short-term share price adjustments could occur as expectations are revised downward.”
Joo projected that losses in automotive batteries will likely persist until the third quarter of next year. “Profitability recovery depends heavily on utilization recovery from BMW and Stellantis. However, sluggish U.S. demand and the company’s delayed response to the mid- to low-end segment mean it will take time,” he explained.
He added, “Meaningful progress in addressing the mid- to low-end market is expected to begin in 2027 with mass production of LFP batteries for European clients. With an ESS ramp-up from 11GWh to 18GWh, annual profitability could be achieved in 2026.”
For the third quarter, NH expects Samsung SDI to post a steep loss, with revenue down 19% year-on-year at 3.2 trillion won and an operating loss of 358 billion won.
Joo also highlighted that “due to weak U.S. demand from Stellantis, the Advanced Manufacturing Production Credit (AMPC) is unlikely to be recognized this quarter. About 100 billion won in delayed compensation from the second quarter will be reflected, slightly improving automotive battery profitability, but losses of over 20% are expected to persist.” He added, “ESS earnings are likely to weaken compared to the previous quarter due to tariff impacts, while small batteries could see slight improvement as client inventory adjustments ease.”
*[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 16.109 trillion won (as of September 8, 2025, closing price).
Corporate Logo(source: samsungsdi.com)
NH Investment & Securities said on September 9 that while Samsung SDI (006400) is expected to return to profitability next year, investor expectations should be lowered. The brokerage maintained its “Buy” rating but reduced its target price by 4% from 260,000 won to 250,000 won. The previous day’s closing price was 199,900 won.
Analyst Joo Min-woo noted, “The market consensus for 2026 operating profit is 647 billion won, but our estimate is 412.7 billion won. Short-term share price adjustments could occur as expectations are revised downward.”
Joo projected that losses in automotive batteries will likely persist until the third quarter of next year. “Profitability recovery depends heavily on utilization recovery from BMW and Stellantis. However, sluggish U.S. demand and the company’s delayed response to the mid- to low-end segment mean it will take time,” he explained.
He added, “Meaningful progress in addressing the mid- to low-end market is expected to begin in 2027 with mass production of LFP batteries for European clients. With an ESS ramp-up from 11GWh to 18GWh, annual profitability could be achieved in 2026.”
For the third quarter, NH expects Samsung SDI to post a steep loss, with revenue down 19% year-on-year at 3.2 trillion won and an operating loss of 358 billion won.
Joo also highlighted that “due to weak U.S. demand from Stellantis, the Advanced Manufacturing Production Credit (AMPC) is unlikely to be recognized this quarter. About 100 billion won in delayed compensation from the second quarter will be reflected, slightly improving automotive battery profitability, but losses of over 20% are expected to persist.” He added, “ESS earnings are likely to weaken compared to the previous quarter due to tariff impacts, while small batteries could see slight improvement as client inventory adjustments ease.”
*[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 16.109 trillion won (as of September 8, 2025, closing price).