[THE INVESTOR] Dongbu Securities on July 29 predicted that Samsung SDI's third-quarter earnings could fall below 1 trillion won (US$890 million) considering the continuing business uncertainties in China, hinting at reducing its target price soon.
The stock price closed at 10,600 won, down 3.2 percent from the previous day.
Samsung SDI's EV battery.
The securities firm said it is unlikely for the battery-making unit of Samsung Group to solve the regulatory issues in China where the local authorities are suspending subsidies for electric vehicles using the company’s nickel-manganese-cobalt-oxide batteries, or NMC.
Chinese sales now make up almost 30 percent of the company’s EV battery sales. In its earnings call on July 28, the company showed confidence in settling the Chinese woes in the coming months.
“We plan to lower the company’s earnings outlook below 1 trillion won considering the Chinese issues are not likely to be solved within the year,” Dongbu said in its report.
In the April-June period, Samsung SDI suffered operating loss of 54.2 billion won. Sales stood at 1.31 trillion won, up 11.95 percent on year.
By Lee Ji-yoon (jylee@heraldcorp.com)