Samsung SDI(006400): PDP to resume growth, AMOLED to provide new growth engine
- Company update
- Maintain BUY and TP of KRW100,000
> Samsung SDI(SDI) is expected to end its 2-year-long negative growth and be on its recovery track from next year.
> Sales of PDPs and rechargeable batteries will continue to grow and AMOLED will be introduced to the market next year, providing new growth engine.
> We expect SDI to post OP of KRW46.9bn(+112% q/q, OP margin 2.7%) on sales of KRW1.7tn(+5.3% q/q) in 3Q06 on a consolidated basis.
> Consolidated OP is forecast to reach KRW87.0bn in 4Q06 on the back of normalization of production lines and OPM expansion(+2%p) following falls in material prices.
> In 4Q07, SDI’s OP may even reach KRW100bn level for the first time in two years.
> The company is expected to post positive sales growth(on a consolidated basis) in FY07 for the first time in three years. |
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