Valuation is as high as 47.7 billion yuan, Samsung Display shares may be sold

On February 19, Samsung SDI announced that it had submitted a report to the board of directors and planned to sell its shares in Samsung Display to obtain funds and optimize its financial structure. Currently, Samsung SDI holds 15.2% of Samsung Display’s shares, which is valued at approximately 10 trillion won based on book value. Although the specific scale of the sale has not been disclosed, it is widely expected in the industry that Samsung SDI will sell all its shares.

Data shows that Samsung SDI’s sales in 2023 will be 13,266.7 billion won, with an operating loss of 1,722.4 billion won. Despite facing losses, the company has invested about 3.3 trillion won in facilities, accounting for half of the 6.6 trillion won expected to be invested in 2024.

It is worth noting that although this investment amount is lower than the 4,344.7 billion won expected in 2023, it is higher than the actual investment amount of 2,518.1 billion won in 2022.

Market analysis points out that Samsung Electronics is likely to acquire the shares sold by Samsung SDI. Currently, Samsung Electronics holds 84.8% of Samsung Display. If the transaction is successfully completed, Samsung Display will become a wholly-owned subsidiary of Samsung Electronics, which will significantly strengthen Samsung Electronics’ direct control over Samsung Display.

In addition, as the world's leading display panel manufacturer, Samsung Display has attracted the attention of domestic and foreign strategic investors with its strong performance and stable earnings. Industry insiders believe that as Samsung SDI exits its shareholding, Samsung Display's ownership structure will become clearer and is expected to attract more long-term investors.