SDI Expecting Solid 2020 Despite Poor Q1

Despite a 54.6 plunge in operating profits to 64.8 billion won, Samsung SDI's senior fund managers expect a positive business outlook in the second quarter with more ESS orders in the United States and better EV battery demand.

SDI reported 2.39 trillion won in revenue for the three months to March 31, up 4.1 percent year-on-year.

According to one of the fund managers, they expect growth in the second half that would catapult SDI's share price to 390,000 won by the end of this year, up from Friday's closing rate of 286,000 won.

SDI's order backlog for EV batteries is expected to increase by $45 billion in 2020.

While the company's electronic materials division is expected to face more challenges, margins and profits are expected to improve due to increasing demand for OLED and semiconductor materials."

Fund managers also expect revenue from the company's electronic materials and small battery divisions to remain flattish this year.