Robust Growth Anticipated
The author is an analyst of NH Investment & Securities. He can be reached at j.ko@nhqv.com. -- Ed.
Samsung SDI’s valuations and share price performance are both closely linked to its xEV rechargeable battery business earnings. The firm’s rechargeable battery domain has successfully strengthened/expanded its client base and improved its related technological capabilities. Moving ahead, SDI’s rechargeable battery business is to enjoy robust growth, backed by: 1) government policy support in several countries for xEVs; and 2) greater xEV production at major automakers.
Samsung SDI’s rechargeable battery business sales portion is expected to rise from 33% in 2020, to 36% in 2021, and to 42% in 2022, with accompanying operating income to up from –W32.8bn in 2020, to W249.1bn in 2021, and to W412.4bn in 2022. With cost factors likely to remain favorable, Samsung SDI’s operating leverage effects should amplify along with its anticipated sales growth.