[Click eStock] "Samsung SDI, Continued Weak Demand... Target Price Down"

NH Investment & Securities evaluated that Samsung SDI is expected to recover in 2025, but the recovery is not significant. Accordingly, they maintained a 'Buy' investment rating and lowered the target price to 33,000 KRW.

Joo Min-woo, a researcher at NH Investment & Securities, stated, "The sales growth rate for 2025 has been revised down from the previous +20% year-on-year to +13," adding, "The industry recovery in 2025 is not significant, so the upside is limited."

Researcher Joo analyzed, "The prolonged deficit in the small battery segment due to weak demand and delayed customer acquisition is also a burden on performance," and "Compared to competitors, the competitiveness in the mid-to-low price segment and large-diameter cylindrical battery orders is insufficient, so the relative stock price is expected to underperform in the short term."

Meanwhile, Researcher Joo forecasted that the fourth-quarter earnings would fall short of consensus (sales of 4.2 trillion KRW, operating profit of 128 billion KRW).

He predicted, "Fourth-quarter sales are expected to decrease by 30% year-on-year to 3.9 trillion KRW, and operating profit is expected to turn to an operating loss of 201 billion KRW," diagnosing, "Due to weaker-than-expected demand, sales in all business units except ESS were sluggish, and profitability is estimated to have worsened further due to fixed cost burdens and the reflection of one-time expenses."