Samsung SDI Stock: Down But Not Out? Why Q4 2025 is the Key for Investors

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Samsung SDI, Awaiting a Q4 Turnaround: Crisis or Opportunity? Samsung SDI, Awaiting a Q4 Turnaround: Crisis or Opportunity? Samsung SDI, a leader in South Korea's secondary battery industry. With its recent stock performance and earnings announcement causing anxiety for many investors, let's explore together whether this is a moment of crisis or a new opportunity. Why Q2 2025 Earnings Fell Short of Expectations According to the DS Investment & Securities report, Samsung SDI's Q2 2025 performance unfortunately fell short of market expectations (consensus). While revenue was about 3.2 trillion KRW, the operating loss reached 397.9 billion KRW. So, why did this happen? The biggest reason was the slump in the large-to-medium-sized battery division . This was due to delays in electric vehicle (EV) supply to major clients and the increased burden of fixed costs from its joint venture (JV) with Stellantis. Furthermore, tari...

HD Hyundai Mipo's Stunning Q2 (010620) ,Next Big Thing in Shipbuilding? Analyzing the 2025 Report

HD Hyundai Mipo Report Analysis: A New Leap Forward

HD Hyundai Mipo: Why It's Late to the Game, but Catching Up Fast!

HD Hyundai Mipo (010620)'s recent performance and future outlook, based on a report from Yuanta Securities. The subtitle, 'Late but Fast,' suggests an interesting story. With the shipbuilding industry gaining a lot of attention in the stock market recently, let's find out why HD Hyundai Mipo is in the spotlight!

2Q25 Review: Exceeding All Expectations

HD Hyundai Mipo recorded 1.2 trillion KRW in sales and 89.4 billion KRW in operating profit for Q2 2025. This is a great result that surpassed market expectations (consensus). A particularly noteworthy point is that this performance was achieved despite a one-time bonus cost of 9.4 billion KRW, which was shared with HD Hyundai Heavy Industries and HD Hyundai Samho. If this cost had not been included, the operating profit would have been even higher.

A Clear Rise in Operating Margin: Driven by High-Profit LNG Ships!

Previously, HD Hyundai Mipo's operating margin was relatively low compared to larger shipbuilders due to a lack of LNG (Liquefied Natural Gas) vessel orders and a focus on small to medium-sized ships. However, according to the report, the Q2 2025 operating margin increased by 5.7%p year-over-year, showing a clear upward trend.

The key to this change is the order for **high-profit LNGBV (LNG Bunkering Vessel, a ship that supplies LNG to other vessels)**. It is expected that HD Hyundai Mipo could achieve a double-digit operating margin (OPM) by FY27, a feat that would have been impossible with the previous product mix of mainly tankers and container ships.

Target Price Raised, 'BUY' Opinion Maintained

Yuanta Securities positively evaluated HD Hyundai Mipo's operating margin recovery and raised its target price to **254,000 KRW**, up from the previous 236,000 KRW. The investment opinion was maintained at 'BUY'.

This positive outlook is supported by **an improved order mix from additional LNGBV orders** and **actual ordering demand from the expansion of the US Navy's strategic sealift fleet**. Of course, every investment comes with risks. Potential downsides for investors to consider include a reversion of the gas ship ordering trend back to MR tankers (Medium Range product tankers), which could limit the improvement in profit margins for FY27-28, and a slower improvement in the product mix for sales recognition in FY25 compared to large shipbuilders.

Summary: HD Hyundai Mipo Finds a New Growth Engine

Despite one-time costs, HD Hyundai Mipo delivered strong Q2 results and is rapidly improving its operating margin, particularly through high-profit LNG vessel orders. This is more than just a good quarter; it can be interpreted as a crucial change that will serve as a future growth engine for the company. It will be an interesting investment point to watch how HD Hyundai Mipo continues this positive momentum.

Investment Areas and Actionable Strategies

  1. Monitor Shipbuilding Market Trends: HD Hyundai Mipo is in the shipbuilding sector. Continuously check the overall trends of the shipbuilding industry, such as new build orders, ship price movements, and oversupply issues in the shipping market.
  2. Diversify Your Portfolio: Instead of focusing on a single stock, consider diversifying your portfolio with other companies in the shipbuilding sector (e.g., HD Korea Shipbuilding & Offshore Engineering) or related parts and equipment suppliers to mitigate risk.
  3. Invest with a Long-Term Perspective: The shipbuilding industry has a characteristic of long lead times from order to delivery. It is better to invest based on medium-to-long-term fundamental changes, such as the company's order backlog and improvements in its product mix, rather than reacting to short-term stock price fluctuations.
  4. Implement a Phased Purchase Strategy: Instead of buying all at once up to the target price, a phased purchase strategy, where you buy in smaller increments according to market conditions, can help manage investment risk.

Disclaimer

This article is for general informational purposes only, based on the HD Hyundai Mipo report, and is not an investment recommendation for a specific stock. The information contained in this article should be used only as a reference for your investment decisions, and all investments carry the risk of loss of principal. Investors are advised to carefully consider their investment goals and risk tolerance and to consult with a financial professional before making any final decisions.

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