[Edaily Reporter Kwon Oh Seok ] DS Investment & Securities announced on the 8th that it is maintaining its “Buy” rating on SAMSUNG SDI CO.,LTD.(006400)and raising its target price from 840,000 won to 940,000 won.

Choi Tae-yong, an analyst at DS Investment & Securities, stated, “We expect a series of order announcements in the fourth quarter. Regarding ESS (energy storage systems) in North America, additional discussions are underway following existing long-term supply contracts. In Europe, the goal is to secure orders within the year for multiple prismatic projects, including LFP (lithium iron phosphate) batteries,” he said, adding, “Once the in-region production requirements under the EU’s Industrial Acceleration Act are finalized, the incentive for European OEMs (original equipment manufacturers) to place orders for non-Chinese cells will increase.”
He continued, “The 4.5 trillion won raised from the partial sale of Samsung Display shares will fund the acquisition of Synergy Cells and capacity expansion in the U.S. “Synergy Cells is currently reviewing the conversion of two lines (10 GWh annually) to ESS production, with the goal of commencing operations in the second half of 2028,” he explained, emphasizing, “The remaining lines could be allocated to additional ESS volumes in North America and U.S. production demand from European OEMs. This is an area to watch for upside potential.”
He projected this year’s revenue at 16 trillion won (up 20.9% year-over-year) and operating profit at 530.3 billion won (a return to profitability). Analyst Choi noted, “We have raised our full-year operating profit forecast by 42% to reflect settlement gains and the fourth-quarter ESS guidance,” adding, “Excluding the AMPC (Advanced Manufacturing Production Tax Credit) in the fourth quarter, the battery division’s operating profit will also return to profitability at 27.5 billion won. ESS revenue is expected to increase by 50–60%.”
Furthermore, he predicted, “While third-quarter growth was driven primarily by deferred domestic orders, the fourth quarter will see the addition of U.S. orders, driven by the Indiana LFP line entering mass production in October.” He added, “AMPC will also increase to 150.1 billion won in the fourth quarter due to expanded U.S. production. The slump in the automotive division caused by the gap in BMW orders will be offset by the return to profitability in the small-format battery segment and the expansion of the ESS business.”