[Edaily Reporter KIM YOON-JEONG ] iM Securities assessed that while short-term earnings uncertainty remains for SAMSUNG SDI CO.,LTD.(006400)’s electric vehicle (EV) battery business, its mid- to long-term growth potential is being highlighted due to the expansion of the energy storage system (ESS) market for artificial intelligence data centers (AIDC). The firm maintained its “Buy” rating but lowered the target price to 700,000 won from the previous level to reflect the decline in valuations across the global rechargeable battery sector.

On the 30th, Jeong Won-seok, an analyst at iM Securities, stated, “The key point to focus on at this time is the potential to expand market share in the U.S. ESS market,” adding, “The current stock price corresponds to a price-to-earnings (P/E) ratio of 19.7 times based on 2028 earnings estimates, indicating that valuation pressure has significantly eased compared to the peak reached last April.”
He added, “At this point, we believe a selective strategy of increasing exposure to battery cell manufacturers—which offer relatively clear visibility on earnings improvement and policy benefits within the sector—is effective.”
iM Securities projected that SAMSUNG SDI CO.,LTD.’s second-quarter revenue would reach 3.7 trillion won, a 16% year-over-year increase, and that operating profit would turn positive at 7 billion won, exceeding market expectations. The market consensus is for revenue of 3.7 trillion won and an operating loss of 69.9 billion won.
In the automotive battery segment, revenue is expected to decline due to reduced shipments to major client BMW and the elimination of compensation payments related to Stellantis’ failure to meet minimum purchase volume requirements. However, the firm anticipates that the loss margin will narrow compared to the previous quarter, as the Advanced Manufacturing Production Tax Credit (AMPC) is expected to be generated from substitute production at the U.S. SPE plant to meet Stellantis’ European export volume requirements.
The Energy Storage System (ESS) business is projected to continue its gradual revenue growth, driven by the expansion of renewable energy and increased investment in AI data centers. The small-sized battery division is also expected to maintain a positive trend, supported by growing demand for Battery Backup Units (BBUs) for AI data centers.
Analyst Jeong explained, “We expect the share of BBUs in this year’s annual cylindrical battery sales to expand to the mid-10% range.” He added, “However, since there are still outstanding orders for power tools and e-bikes secured during a previous period of oversupply, this is likely to weigh on the product mix and profitability; consequently, we anticipate that the small battery segment will continue to post losses for the time being.”
The expansion of AI data centers was assessed as a medium- to long-term growth driver. Analyst Jeong analyzed, “Demand for ESS for AI data centers (AIDC) is expected to surge in the future,” adding, “ESS will establish itself as a core infrastructure for load leveling, protecting upstream power infrastructure, maintaining power quality, and managing peak power demand.”
He continued, “The fact that the company has recently been expanding discussions with U.S. hyperscalers regarding ESS supply also supports this trend,” and predicted, “Considering the new ESS demand that will arise from AI data centers, the current market forecast for U.S. ESS demand in 2030 is highly likely to be significantly revised upward.”
He further noted, “We believe that the U.S. administration’s regulations on Chinese-made ESS, set to take full effect starting in 2026, will provide structural growth opportunities for domestic battery cell manufacturers.”
He explained that the target price reduction reflects a valuation adjustment. Analyst Jeong stated, “We are lowering the target price to 700,000 won to reflect changes in valuation resulting from the global decline in secondary battery sector stock prices.”