Daol Investment Securities announced on August 25 that it has raised its target price for Samsung SDI from 770,000 won to 820,000 won, an increase of 6.5%, citing expectations for growth through the sale of its stake in Samsung Display (SDC) and the expansion of its energy storage system (ESS) production capacity. The firm maintained its 'buy' rating.
Research analyst Yoo Ji-woong stated, "Considering the improvement in financial structure from the SDC stake sale and the acquisition of shares in the joint venture with GM to expand ESS production capacity, we have adjusted the target price upward. We have also changed our target price calculation method to account for accelerated penetration into the ESS market."
On August 21, Samsung SDI announced it would sell 5% of its 15.2% stake in SDC. The shares will be bought back and retired by SDC, allowing Samsung SDI to secure approximately 4.5 trillion won in cash. The market value of the SDC stake being sold is estimated at about 13.5 trillion won, exceeding the previous book value of 11.2 trillion won by more than 20%.
Analysts suggest that the funds raised will likely be used for investments in its U.S. operations. Yoo noted, "This could quickly resolve uncertainties in the financial structure caused by significant operating losses."
The expansion of the ESS business is also noteworthy. Samsung SDI previously announced plans to acquire the entire stake in Synergy Cells, its joint venture with GM in the U.S. This acquisition is expected to secure a production capacity of 27 GWh for ESS batteries. When combined with its existing U.S. production base, StarPlus Energy (SPE), the total ESS production capacity is projected to increase to approximately 67 GWh.
Yoo anticipates that through the SDC stake sale and the acquisition of the GM joint venture, Samsung SDI will secure new investment capacity while also accelerating growth focused on ESS.
* This article has been translated by AI.
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