Attention is focusing on whether Samsung SDI's stock price will break its high point again. Stock market analysts predict that the stock price could rise further on expectations of improved performance in the second half, in addition to the growth of electric vehicle batteries.
According to the Korea Exchange on June 29, shares of Samsung SDI were trading at 367,000 won as of 9:30 a.m., down 0.81 percent from the previous trading day.
Shares of Samsung SDI plunged to 180,000 won on March 19. With this at its lowest point, it has made a full-fledged rebound in the last three months. The price rose to 399,000 won on June 11, approaching the 400,000 won mark. Since then, profit-taking has been on the market, taking a breather at around 360,000 won.
Stock market analysts believe that further gains can be made on expectations of improved earnings in the second half.
Shinhan Investment Corp. estimates Samsung SDI's sales of 2.496 trillion won (+3.8 percent from a year earlier) and operating profit of 94 billion won (-40.3 percent) in the second quarter, exceeding market expectations (operating profit 55 billion won).
"We expect not only to cut costs due to the rise in the operation of medium-sized batteries, but also to improve the performance of small batteries due to Samsung Electronics' recovery in its smartphone business," said So Hyun-chul, a researcher at Shinhan Investment Corp.
Experts are paying attention to improving performance of EV batteries. Kim Hyun-soo, a researcher at Hana Financial Investment, said, "The sales of EV batteries will increase 53% year-on-year and can lead the growth of performance by entering the surplus structure in the second half of last year."
He analyzed, "Considering that the small battery business division will continue to suffer from recession from the second half of last year, and that the performance of the polarizing film business is stronger than expected, we believe that the EV sector will be able to raise its overall performance in the future."
Furthermore, some say that regulations on carbon dioxide in the European market will also help the growth of EV batteries.
Kim Young-woo, a researcher at SK Securities, said, "The European Union (EU)'s regulation on carbon dioxide (CO2) remains unchanged despite the COVID-19 incident. In order to fight electric cars led by Tesla of the U.S., Europe could also come up with a stronger policy to activate electric vehicles."
"As Volkswagen delivers its electric vehicle ID.3 in early September, it will start popularizing its electric vehicles," said researcher So. "From the third quarter of this year, sales of batteries to European carmakers can be expanded in earnest from the Hungarian battery line, which has greatly expanded production capacity in the first half of this year."
The target stock price of Samsung SDI was 500,000 won for Shinhan Financial Investment, 480,000 won for Hana Financial Investment and 400,000 won for SK Securities.
