[Click eStock] "Samsung SDI, Positive Mid- to Long-Term Demand for Automotive Secondary Batteries and ESS"

[Asia Economy Reporter Oh Ju-yeon] On the 24th, SK Securities analyzed that the stock price of Samsung SDI next year will vary depending on the national policies driving electric vehicle promotion and the status of affordable electric vehicle projects by automakers. They noted that the current situation, where gas stations are attempting to transform into mobility services based on charging stations, confirms long-term growth potential. Accordingly, they maintained a 'Buy' investment rating and raised the target price to 600,000 KRW.

Kim Young-woo, a researcher at SK Securities, explained, "Tesla's new affordable electric vehicle is equipped with world-class FSD (Full Self Driving) technology and priced at $25,000. Global automakers, including those in Korea, are expected to release similar vehicles by 2025," adding, "For the era of affordable autonomous electric and hydrogen vehicles to open, the establishment of charging infrastructure is crucial."

Researcher Kim stated, "Oil companies are pursuing transformation into various mobility service hubs by signing business agreements with major companies for charging facilities, vehicle management and maintenance, and data sharing (though the success is uncertain)," and predicted, "If the prices of electric vehicles and batteries decrease, it is expected to positively impact the creation of demand in Southeast Asian markets such as Vietnam and Malaysia, as well as for electric scooters."

He anticipated that demand will surge due to the diversification of price ranges.

Demand for secondary batteries for automobiles and ESS is positive in the mid to long term. Although small batteries are expected to see a slight decrease compared to the previous quarter, profitability is expected to remain solid. Samsung Display (SDC) is also expected to record an operating profit of 1.3 trillion KRW in the fourth quarter.

However, he pointed out that for medium and large batteries, supply capacity and prices for 2021?2022 have largely been decided, so the possibility of significantly exceeding consensus earnings is low, which is a regrettable aspect.