Corporate Logo(source: samsungsdi.com)
Concerns over battery demand have surfaced for Samsung SDI (006400) following the introduction of tariffs by the United States and the announcement of Europe’s Action Plan, raising uncertainty about the timing of industry recovery.
Lee Hyun-wook, an analyst at IBK Investment & Securities, stated on April 28, “We maintain a Buy rating on Samsung SDI but lower the target price to 300,000 KRW due to downward revisions of earnings estimates.”
Samsung SDI posted first-quarter revenue of 3.2178 trillion KRW, down 15.4% from the previous quarter, and an operating loss of 434.1 billion KRW, continuing its losses. The operating loss was larger than the previously expected figure of around 300 billion KRW, largely attributed to inventory adjustments and demand declines from European OEMs, as well as sluggish sales of mid-to-large EV models.
IBK Investment & Securities expects a partial recovery in the second quarter. Lee projected, “Samsung SDI’s second-quarter revenue will decrease by 14.1% quarter-on-quarter to 3.624 trillion KRW, with an operating loss narrowing to 110 billion KRW.”
He added, “Shipments to major customer BMW are expected to increase, leading to a rise in mid-to-large size battery shipments centered in Europe.”
Regarding North America, Lee explained, “Of the four production lines at the first joint venture (JV) plant with Stellantis, one line began operation in December 2024. Future earnings improvement hinges on increased EV sales by Stellantis in the U.S., which would allow for additional line activations.”
However, he warned that a full recovery remains uncertain. “Although earnings may not deteriorate further from this quarter, resolving industry uncertainties is a prerequisite for sustained recovery,” Lee said.
*[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 12.735 trillion won(as of April 25, 2025, closing price).
Corporate Logo(source: samsungsdi.com)
Concerns over battery demand have surfaced for Samsung SDI (006400) following the introduction of tariffs by the United States and the announcement of Europe’s Action Plan, raising uncertainty about the timing of industry recovery.
Lee Hyun-wook, an analyst at IBK Investment & Securities, stated on April 28, “We maintain a Buy rating on Samsung SDI but lower the target price to 300,000 KRW due to downward revisions of earnings estimates.”
Samsung SDI posted first-quarter revenue of 3.2178 trillion KRW, down 15.4% from the previous quarter, and an operating loss of 434.1 billion KRW, continuing its losses. The operating loss was larger than the previously expected figure of around 300 billion KRW, largely attributed to inventory adjustments and demand declines from European OEMs, as well as sluggish sales of mid-to-large EV models.
IBK Investment & Securities expects a partial recovery in the second quarter. Lee projected, “Samsung SDI’s second-quarter revenue will decrease by 14.1% quarter-on-quarter to 3.624 trillion KRW, with an operating loss narrowing to 110 billion KRW.”
He added, “Shipments to major customer BMW are expected to increase, leading to a rise in mid-to-large size battery shipments centered in Europe.”
Regarding North America, Lee explained, “Of the four production lines at the first joint venture (JV) plant with Stellantis, one line began operation in December 2024. Future earnings improvement hinges on increased EV sales by Stellantis in the U.S., which would allow for additional line activations.”
However, he warned that a full recovery remains uncertain. “Although earnings may not deteriorate further from this quarter, resolving industry uncertainties is a prerequisite for sustained recovery,” Lee said.
*[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 12.735 trillion won(as of April 25, 2025, closing price).