Samsung SDI(006400): Bottom-out expectation is intact
- 2Q comment
- Reiterating BUY but revising down TP to KRW80,000 (PBR 0.8x) from KRW104,000
PDP shipments declined for the first time since the start of mass production in 2001. They fell 21% while the market shipments fell 13%.
Expecting turnaround in 3Q06 on the back of
1) seasonal demands and
2)normalizing PDP line which experienced production setback in 2Q06.
We forecast sales and OP will grow 13% q/q and 167% q/q respectively to KRW1.8tn and KRW58.9bn(consolidated basis) in 3Q06.
Estimating FY06 shipments of rechargeable battery, PDP, M/D and CRT to grow 47% y/y, 36% y/y, 17% y/y and 0% y/y respectively.
However, due to ASP falls, divisional sales growth will be weaker than shipment growth. |
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