[Click eStock] Samsung SDI Expected to Show Weak Q4 Performance... Target Price Downgraded

On the 31st, Kiwoom Securities lowered the target price for Samsung SDI to 470,000 KRW, reflecting changes in earnings estimates. The investment rating was maintained at 'Buy.'

In a report released that day, Junsoo Kwon, a researcher at Kiwoom Securities, analyzed, "Third-quarter sales decreased by 30% year-on-year to 3.9 trillion KRW, and operating profit fell by 72% to 129.9 billion KRW, missing the market consensus of 136.7 billion KRW. Profitability worsened compared to the previous quarter due to weakened demand for electric vehicles in Europe and decreased sales of cylindrical batteries."

Fourth-quarter sales are expected to reach 4.1 trillion KRW, with operating profit at 104.4 billion KRW.

Researcher Kwon forecasted, "In the fourth quarter as well, operating profit is expected to fall short of market expectations (operating profit consensus of 262.1 billion KRW) due to lower operating rates caused by customer inventory adjustments and a deteriorated product mix."

He advised approaching from a mid- to long-term perspective rather than short-term. Researcher Kwon stated, "While the recent earnings announcement confirmed weak short-term performance, it also reaffirmed expectations for mid- to long-term business growth in ESS, 46-pie, and all-solid-state batteries. ESS sector growth and recovery in European demand are expected next year. We recommend approaching from a mid- to long-term perspective rather than short-term."