[Featured Stocks] LG Chem, Samsung SDI, and Other Secondary Battery Manufacturers Rally

[Asia Economy Reporter Lee Seon-ae] The secondary battery-related theme is showing strength.

At 9:30 a.m. on the 1st, Samsung SDI recorded 715,000 won, up 2.58% from the previous day. LG Chem is trading at 856,000 won, up 0.71%. SK Innovation's gains have somewhat retreated, but it surged to 299,000 won in early trading.

KB Securities estimated Samsung SDI's Q2 sales to increase by 33% year-on-year to 3.4 trillion won, and operating profit to rise by 122% to 230 billion won. The expected operating profit margin is 6.7%.

The basis for the strong Q2 performance estimate includes △ expected operating profit turnaround due to expanded front-end demand in the EV battery business △ continued improvement in cylindrical battery performance driven by product mix improvement, price hikes, and increased demand △ a 57% quarter-on-quarter increase in ESS battery sales due to increased sales to North America △ and expectations of expanded performance in all major items of the electronic materials division compared to the previous quarter.

Lee Chang-min, a researcher at KB Securities, stated, “The upward performance trend is expected to continue in the second half of the year.” Samsung SDI's performance for this year is estimated at 13.9 trillion won in sales, up 23% year-on-year, and 980 billion won in operating profit, up 46%, with the second half accounting for 54% of sales and 63% of operating profit.