Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<div class="content-highlight"><p><strong><a href="https://www.smartkarma.com/entities/samsung-sdi-co-ltd-56fbe460-3e52-45a8-ad22-f3fcba52df02" target="_blank" data-smartkarma-citation="entities:28851:1" rel="noopener">Samsung SDI Co Ltd (006405 KS)</a> shares have been soaring this year (up 92% YTD), versus KOSPI which is up only 1% YTD. Samsung SDI Pref has been one of the top-performing stocks in KOSPI this year. We believe it is time to take profits on this name and take it out of our model portfolio. </strong></p></div><p>One of the main reasons why Samsung SDI Pref shares have done so well this year is because of the surging share price of <a href="https://www.smartkarma.com/entities/tesla-motors-inc" target="_blank" data-smartkarma-citation="entities:20279:1" rel="noopener">Tesla Motors (TSLA US)</a> which has had a big positive impact on EV related Korean companies such as <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> and <a href="https://www.smartkarma.com/entities/lg-chem-ltd" target="_blank" data-smartkarma-citation="entities:3583:1" rel="noopener">LG Chem Ltd (051910 KS)</a> whose share prices are up 45% and 30%, respectively.</p><p>In the past 40 days, the consensus sales and operating profit estimates of Samsung SDI have been coming down (sales estimate in 2020 down 3.1% and operating profit estimate down 10.1%). Therefore, Samsung SDI's surging share price YTD has occurred despite the lower consensus earnings estimates. </p>

Samsung SDI Co Ltd (006405 KS) shares have been soaring this year (up 92% YTD), versus KOSPI which is up only 1% YTD. Samsung SDI Pref has been one of the top-performing stocks in KOSPI this year. We believe it is time to take profits on this name and take it out of our model portfolio. One of the main reasons why Samsung SDI Pref shares have done so well this year is because of the surging share price of Tesla Motors (TSLA US) which has had a big positive impact on EV related Korean companies such as Samsung Sdi (006400 KS) and LG Chem Ltd (051910 KS) whose share prices are up 45% and 30%, respectively.In the past 40 days, the consensus sales and operating profit estimates of Samsung SDI have been coming down (sales estimate in 2020 down 3.1% and operating profit estimate down 10.1%). Therefore, Samsung SDI's surging share price YTD has occurred despite the lower consensus earnings estimates. 

Take Profits on Samsung SDI Pref (Up 92% YTD)

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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Take Profits on Samsung SDI Pref (Up 92% YTD)

Samsung SDI Co Ltd (006405 KS) shares have been soaring this year (up 92% YTD), versus KOSPI which is up only 1% YTD. Samsung SDI Pref has been one...

Douglas Kim