Samsung SDI's Shares Climb on Hopes for Growth

By Kwanwoo Jun

Samsung SDI's shares climbed sharply Monday on hopes for business growth as it led a rally in stocks of electric-vehicle battery makers.

Shares of the South Korean EV battery maker rose as much as 6.9% to 715,000 won ($543.19) in afternoon trade, outperforming the benchmark Kospi's 1.4% gain.

The stock's daily percentage gain--the fastest since April 5--outpaced those of its two major local peers, SK Innovation and LG Energy Solution, which rose as much as 4.5% and 4.2%, respectively.

EV battery stocks helped the Kospi rise Monday as government data over the weekend showed the country returned to a trade surplus in June after 15 consecutive months of deficits, partly because of brisk vehicle exports, including EVs eligible for tax breaks under the U.S. Inflation Reduction Act.

ING senior economist Min Joo Kang said in a note Monday that global demand for EVs and batteries could remain robust in the second half of the year.

Samsung SDI's shares could deserve higher valuations compared with its competitors given its technological edge and recent push for aggressive investment in the fast growing U.S. battery market, Hi Investment & Securities analyst W.S. Chung said in a research note Monday.

Samsung SDI CEO Choi Yoon-ho said Thursday that the world's first prototype all-solid-state batteries would be produced from its pilot factory south of Seoul in the second half of the year, according to the country's state Yonhap news agency. Solid-state batteries are often called "dream batteries" for their high energy density and safety.

The company said in April that it would jointly invest at least $3 billion with General Motors to build an EV battery plant in Indiana, where it has also launched a separate battery joint venture with Stellantis.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

(END) Dow Jones Newswires

July 03, 2023 02:44 ET (06:44 GMT)

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