[Edaily Reporter Hyera Lee ] Analysts predict that SAMSUNG SDI CO.,LTD.(006400), having returned to profitability in the second quarter for the first time in seven quarters, will begin a full-scale earnings turnaround in the second half of the year, driven by a recovery in its core business. However, the target stock price was set at 700,000 won—a 13% reduction from the previous estimate—to reflect the decline in valuations among global battery companies.

Lee Jin-myung, a senior analyst at Shinhan Investment Securities, stated, “Starting with the return to profitability in the second quarter, the turnaround will gain full momentum in the second half of the year.” He added, “In the second quarter, tariff refunds and a recovery in demand for small batteries will drive the rebound in earnings, and starting in the third quarter, the recovery of the core business will continue, centered on rising utilization rates for electric vehicles (EVs) in Europe and expanded sales of energy storage systems (ESS).”
Shinhan Investment Securities estimates that SAMSUNG SDI CO.,LTD. will post an operating profit of 14.3 billion won in the second quarter, returning to profitability for the first time in seven quarters. This figure significantly exceeds market expectations (-44.9 billion won).
The firm projected that revenue in the mid-to-large battery segment would decline 4% quarter-over-quarter to 2.2 trillion won, but operating profit would return to the black at 59.4 billion won. The analyst noted, “Revenue from EV batteries will slow as one-time effects fade,” but added, “The loss margin is expected to narrow, driven by sales of production volumes from the U.S. joint venture (JV) to Europe and the expansion of the U.S. American Manufacturing Production Credit (AMPC).”
He also predicted that profitability in the ESS business would improve. “While revenue growth will be limited due to delivery delays in domestic projects, we expect continued growth in UPS (uninterruptible power supply) sales and the benefits of U.S. tariff refunds,” he said.
In addition, he projected that sales in the small-sized battery segment would rise 6% quarter-over-quarter and the loss would narrow, driven by increased demand for battery backup units (BBUs) and power tools. He also analyzed that the electronic materials business would see improvements in both sales and profits due to increased shipments of semiconductor materials and a moderation in the OLED off-season.
The analyst stated, “Valuation pressures have eased due to the recent stock price correction across the industry,” adding, “While the robust profitability of ESS provides a floor for earnings, expanded medium- to long-term profit visibility driven by additional ESS orders in North America and rising EV utilization rates will be key factors for a stock price revaluation.”