Samsung SDI, Samsung Biologics, and Others Soar Past 1 Million Won
[Asia Economy Reporter Song Hwajeong] Samsung Group stocks have recorded better-than-expected strong earnings in the second quarter of this year, leading securities firms to raise their target prices one after another, raising their expectations.
According to financial information provider FnGuide on the 29th, nine securities firms simultaneously raised the target price of Samsung SDI after the earnings announcement on the 27th. Among the nine, five suggested target prices above 1 million KRW. Among them, Hana Financial Investment raised it to 1.13 million KRW. Samsung Biologics' target price was also raised to 1.1 million KRW after the earnings announcement, and target prices for Samsung Card, Samsung Electro-Mechanics, and Cheil Worldwide also increased.
The reason for the upward revision of Samsung Group stocks' expectations is due to the strong second-quarter earnings. Samsung SDI recorded the highest quarterly sales ever in the second quarter, and its automotive battery business turned profitable. Samsung SDI posted consolidated sales of 3.3343 trillion KRW and operating profit of 295.2 billion KRW in the second quarter. These figures represent increases of 30.3% and 184.4%, respectively, compared to the same period last year.
Samsung Biologics achieved quarterly record sales of 412.2 billion KRW and operating profit of 166.8 billion KRW in the second quarter. Sales increased by 33.9% and operating profit by 124.5% compared to the same period last year. Samsung Electro-Mechanics recorded second-quarter sales of 2.4755 trillion KRW, up 41%, and operating profit of 339.3 billion KRW, up 230%. The sales figure is the highest since the company's founding, and the operating profit is the highest for a second quarter.
Samsung Card's operating profit in the second quarter increased by 32% to 194.8 billion KRW, and Cheil Worldwide achieved a quarterly record operating profit of 72.1 billion KRW, up 34.03%. All these earnings exceeded market consensus forecasts.
The eldest sibling, Samsung Electronics, announced a surprise earnings beat by significantly exceeding consensus in its preliminary earnings report earlier this month and disclosed confirmed results on the same day. Samsung Electronics posted second-quarter sales of 63.67 trillion KRW and operating profit of 12.57 trillion KRW. These figures represent increases of 20.21% and 54.26%, respectively, compared to the same period last year, with sales being the highest ever for a second quarter. Global investment bank Credit Suisse (CS) selected Samsung Electronics as a recommended Asian semiconductor stock yesterday and set a target price of 126,000 KRW, which is about 60% higher than the current stock price.
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