Galaxy S6 Beneficiary
Considering Samsung SDI’s improvement in sales performance and Samsung Display’s rising equity method gains, Shinhan Investment Corp. raised the company's target stock price from 163,000 won (US$144.73) to 170,000 won (US$150.95).
The company expects that Samsung SDI will record 289 billion won (US$256.62 million) in annual operating profits this year, a 271 percent increase from the previous year. Soh Hyun-chul, analyst at Shinhan Investment, said, “The success of Samsung’s Galaxy S6 and the sales extension of LCD TVs will significantly contribute to the performance improvements of Samsung SDI’s polymer secondary batteries, and OLED materials and polarizing plates, respectively.”
The sales of Samsung Electronics’ LCD TVs this year are expected to increase by 20 percent from the previous year to 60 million units, and the sales of SUHD TVs will reach 4 million units, monopolizing the global high-end TV market. Accordingly, it will considerably improve the performance of Samsung SDI’s polymer secondary batteries, OLED materials, and polarizing plates businesses.
By quarterly operating profits, the figure in the first quarter will stand at the level of 37 billion won (US$32.85 million), which is similar to the previous quarter, due to the expansion of operating losses in the energy solution division. However, it will reach 71 billion won (US$63.04 million) in the second quarter due to an upswing in the businesses of polymer secondary batteries, polarizing plates, OLED materials, and high-functional synthetic resins.
Soh said, “Since environmental pollution is the highest on the agenda of both the National Emblem of the People's Republic of China and the Chinese People's Political Consultative Conference, electric vehicles are expected to come under the spotlight again. Also, the investment sentiment of Samsung SDI’s medium and large sized secondary batteries hit the bottom.”