[Edaily Reporter Park Jung-Soo ] On the 6th, iM Securities projected that SAMSUNG SDS CO., LTD.(018260)could see a re-rating as its AI data center business enters a phase of full-scale growth. The firm maintained its “Buy” rating and raised its target price by 22.7% from 220,000 won to 270,000 won.
Lee Sang-heon, an analyst at iM Securities, stated, “As data center revenue growth accelerates, driven primarily by the expansion of AI infrastructure, profitability improvements will gain momentum,” adding, “The AI data center business will be the key driver of future corporate value growth.”
SAMSUNG SDS CO., LTD. plans to invest a total of 10 trillion won by 2031, including 5 trillion won in AI infrastructure, 4 trillion won in new businesses (M&A), and 1 trillion won in AX and AI services as well as AI platforms and solutions. The company intends to fund these investments using 1.2 trillion won from KKR, 6.6 trillion won in cash and cash equivalents, and cash flow from operating activities.
Currently, the company generates approximately 1.1 trillion won in annual revenue from its five domestic data centers in Sangam, Suwon, Gumi, Chuncheon, and Dongtan. In particular, the Dongtan data center completed the expansion of its West Wing—a 20 MW facility—in the first quarter of this year, and analysts estimate this will generate approximately 600 billion won in additional annual revenue. Based on this, the company expects to see expanded demand for its cloud platform (SCP) and the full-scale launch of its subscription-based GPU service (GPUaaS) business.
The Gumi AI Data Center was also identified as a key growth driver. The 60-MW Gumi AI Data Center is scheduled to begin operations in March 2029 and is expected to generate annual revenue of over 1 trillion won. The National AI Computing Center project is also projected to generate over 1 trillion won in annual revenue, and the firm explained that it aims to secure contracts for over 500 MW in data center DBO (Design, Build, Operate) projects by 2031, targeting 1 trillion won in annual revenue.
The analyst predicted, “With existing data center revenue of 1.6 trillion won combined with 2 trillion won from the Gumi AI data center, 2 trillion won from the National AI Computing Center, and 1 trillion won from DBO projects, data center revenue is expected to reach 6.6 trillion won by 2031,” adding, “Operating profit is also expected to exceed 1 trillion won.”
He continued, “The target price was calculated by applying a price-to-earnings (P/E) ratio of 23.5—which represents a 20% premium to the average P/E ratio over the past two years—to the estimated average earnings per share (EPS) of 11,632 won for 2027–2028,” adding, “As the visibility of growth centered on AI data centers increases, a valuation re-rating will be possible.”