Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

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<li>
<a href="https://www.smartkarma.com/entities/lg-energy-solution" target="_blank" data-smartkarma-citation="entities:33464:1" rel="noopener">LG Energy Solution (373220 KS)</a> recent result is fantastic and made the share price bounce up. </li>
<li>EV makers in the US are renegotiating for a claim in the AMPC that would reduce <a href="https://www.smartkarma.com/entities/lg-energy-solution" target="_blank" data-smartkarma-citation="entities:33464:1" rel="noopener">LG Energy Solution</a>'s (373220 KS) margin. Bear in mind the AMPC has almost 100% margin. </li>
<li>Compared against <a href="https://www.smartkarma.com/entities/samsung-sdi-co-ltd" target="_blank" data-smartkarma-citation="entities:503:1" rel="noopener">Samsung SDI (006400 KS)</a> , which is less reliant on AMPC and a more profitable company, LGES pales in comparison. </li>
</ul>



LG Energy Solution (373220 KS) recent result is fantastic and made the share price bounce up. 
EV makers in the US are renegotiating for a claim in the AMPC that would reduce LG Energy Solution's (373220 KS) margin. Bear in mind the AMPC has almost 100% margin. 
Compared against Samsung SDI (006400 KS) , which is less reliant on AMPC and a more profitable company, LGES pales in comparison. 


<ul>
<li>Rather than going back to profit on Q2 this year, we think it is more likely that <a href="https://www.smartkarma.com/entities/samsung-sdi-co-ltd" target="_blank" data-smartkarma-citation="entities:503:1" rel="noopener">Samsung SDI (006400 KS)</a> will be profitable in Q3 this year. </li>
<li>It will involve around a 70% utilization rate in the EV battery plant, maximizing US AMPC, and a higher contribution from higher-margin batteries for data centers. </li>
<li>The current share price weakness is a buying opportunity but investors do not need to rush, build your positions slowly and carefully. </li>
</ul>


Rather than going back to profit on Q2 this year, we think it is more likely that Samsung SDI (006400 KS) will be profitable in Q3 this year. 
It will involve around a 70% utilization rate in the EV battery plant, maximizing US AMPC, and a higher contribution from higher-margin batteries for data centers. 
The current share price weakness is a buying opportunity but investors do not need to rush, build your positions slowly and carefully. 


External broker reports(aggregated public sources), Mirae Asset Securities

Mirae Asset Securities

External broker reports(aggregated public sources)

Mirae Asset Securities Co.,Ltd. provides comprehensive wealth management services. The Company offers fixed income securities brokerage, securities dealing, equity underwriting, and other services. Mirae Asset Securities also deals with mergers and acquisitions, foreign currency, and financial derivatives

<ul><li>We maintain our target price of W1,000,000 for Samsung SDI and retain the stock as our top pick within the sector.</li><li>We forecast the company to return to operating profitability in 2Q26, earlier than the market expects.</li><li>We revised up our 2Q26 operating profit estimate to W21.2bn (vs. losses in 2Q25 and 1Q26) and our 2026 operating profit estimate to W250bn. We expect both figures to exceed the consensus.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We maintain our target price of W1,000,000 for Samsung SDI and retain the stock as our top pick within the sector.We forecast the company to return to operating profitability in 2Q26, earlier than the market expects.We revised up our 2Q26 operating profit estimate to W21.2bn (vs. losses in 2Q25 and 1Q26) and our 2026 operating profit estimate to W250bn. We expect both figures to exceed the consensus.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Samsung SDI (006400 KS) 2Q26 Preview: Likely to Post First Operating Profit in Seven Quarters

<ul><li>We raise our target price for Samsung SDI to W1,000,000 (from W600,000) and maintain the stock as our top pick within the sector.</li><li>We value the ESS battery unit at W48tr, the EV battery unit at W15tr, the small-sized battery unit at W13tr, and the electronic materials unit at W3tr.</li><li>While our electronic materials valuation remains unchanged, we revised up our valuations of the ESS, EV battery, and small-sized battery units, which are all entering an earnings growth phase.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We raise our target price for Samsung SDI to W1,000,000 (from W600,000) and maintain the stock as our top pick within the sector.We value the ESS battery unit at W48tr, the EV battery unit at W15tr, the small-sized battery unit at W13tr, and the electronic materials unit at W3tr.While our electronic materials valuation remains unchanged, we revised up our valuations of the ESS, EV battery, and small-sized battery units, which are all entering an earnings growth phase.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Samsung SDI (006400 KS/Buy)Early Stages of an Upturn

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<li>
<a href="https://www.smartkarma.com/entities/samsung-sdi-co-ltd" target="_blank" data-smartkarma-citation="entities:503:1" rel="noopener">Samsung SDI (006400 KS)</a> results came out strong and indicated a real turnaround potential that has started in 4Q25, thanks to the shift from EV battery to ESS. </li>
<li>SDI is a beneficiary of the massive surge in AI capex spending, in addition to its EV battery business that recently won a mandate from Mercedez. </li>
<li>There could be an additional USD 315 million from AMPC on 2H26 from SDI's operation in the US through its JV with <a href="https://www.smartkarma.com/entities/stellantis-nv-847415d2-edbe-4b97-b9c9-bece87ed6f72" target="_blank" data-smartkarma-citation="entities:27920:1" rel="noopener">Stellantis NV (STLAM IM)</a> </li>
</ul>



Samsung SDI (006400 KS) results came out strong and indicated a real turnaround potential that has started in 4Q25, thanks to the shift from EV battery to ESS. 
SDI is a beneficiary of the massive surge in AI capex spending, in addition to its EV battery business that recently won a mandate from Mercedez. 
There could be an additional USD 315 million from AMPC on 2H26 from SDI's operation in the US through its JV with Stellantis NV (STLAM IM) 


Samsung SDI (006400): Turnaround and AMPC

South Korea

Samsung SDI Co., Ltd. specializes in developing Lithium Ion Battery (LIB) technology.  The Company also manufactures cathode ray tubes (CRTs) for televisions and computer monitors.  Samsung SDI also produces liquid crystal display (LCD) components and rechargeable batteries for cellular phones , personal digital assistants (PDAs), Energy Storage Systems and solar panels.

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Samsung SDI (006400 KS)

LGES (373220): Good Result, But...

Less attractive compared to Samsung SDI, LG ES is also more heavily reliant to US AMPC. However, the recent earnings rebound makes the case to...

Henry Soediarko

Samsung SDI (006400): Q3 Rather than Q2

Samsung SDI (006400 KS) is expected to turn profitable in Q3 this year, driven by increased utilization in EV battery plant and higher-margin...

Henry Soediarko