Samsung SDI is expected to show the most significant growth among the three major electric vehicle battery giants in South Korea

by:CTECHi     2021-09-07
South Korea's three major electric vehicle battery giants (LG Energy Solutions, Samsung SDI, and SK Innovation) are expected to continue to make profits in 2021 after achieving their best performance in the fourth quarter of 2020. Market analysts predict that after maintaining profitability for three consecutive quarters, LG Energy Solutions, the electric vehicle battery division that has just been spun off from LG Chem, will achieve annual surplus for the first time. Market experts estimate that LG Chem’s operating profit in the fourth quarter of 2020 will be around 700 billion won, while LG Energy Solutions contributed about 200 billion won ($184.7 million) in operating profit. Hyundai Motor Securities estimates that LG Energy Solutions will generate 278 billion won in operating profit and 4.2 trillion won in sales from October to December. LG Chem’s battery division turned losses into profits in the second quarter of 2020, and reported the highest operating profit in history in the subsequent third quarter. In the first three quarters of last year, the accumulated operating profit of this department reached 272.5 billion won, so the total annual profit is expected to exceed 400 billion won. Samsung SDI is expected to achieve quarterly profit for the first time. Samsung SDI is expected to show the most significant growth among the three major electric vehicle battery giants in South Korea. It is estimated that the company’s operating profit in the fourth quarter of last year will exceed 300 billion won, a 140% increase from the same period last year, a record high. According to market analysts, the company's sales may reach 3.5 trillion won. The company's large and medium-sized battery business, including electric vehicle batteries, is expected to return to profitability for the first time in the fourth quarter. Eugene Investment u0026 Securities predicts that the operating profit of the company's large and medium-sized battery division will reach 72 billion won, and the operating profit of the small battery division will reach 128.3 billion won. The improved profitability of the battery division will further enhance the growth momentum of Samsung SDI. In contrast, SKInnovation's performance is not very good. Related forecasts show that the company's operating loss in the fourth quarter of 2020 will narrow to around 90 billion won. In the third quarter of last year, the company achieved 486 billion won in revenue, an increase of 2.5 times year-on-year, and an operating loss of 98.9 billion won. SKInnovation stated that its goal is to achieve sales of approximately 5.5 trillion won in the battery business by 2022. LG Energy Solutions has set a goal of achieving 30 trillion won in sales by 2024. Market experts predict that Samsung SDI’s operating profit this year will exceed 1 trillion won. As countries in the world increase the promotion of electric vehicles, the prospects for South Korean electric vehicle battery manufacturers are expected to be bright.
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