[Edaily Reporter Shin Ha-yeon ] On the 2nd, Yuanta Securities Korea significantly raised its target price for SKSQUARE(402340)from 840,000 won to 2.1 million won, citing continued earnings growth and expansion of equity value centered on SK hynix(000660). The firm maintained its “Buy (BUY)” investment rating.

Lee Seung-woong, an analyst at Yuanta Securities Korea, stated, “The profit growth trend centered on SK hynix is expected to continue,” adding, “With strong demand for AI-oriented memory persisting, the company is expected to set a new annual earnings record.”

The analyst also assessed that earnings at key portfolio companies are improving. He noted, “Tmap Mobility continued its trend of improving EBITDA in the first quarter, with revenue from its Mobility Data business rising 22% year-over-year, and this trend of improved profitability is expected to continue this year,” and “SK Shields also recorded first-quarter revenue of 5591억 won and EBITDA (excluding one-time items) of 1176억 won, driven by growth in its physical and cybersecurity divisions,” he explained.

Expanded shareholder returns were also highlighted as an investment point. The analyst said, “In addition to rising equity value, we also expect expanded shareholder returns,” adding, “Starting in 2026, the company has been paying cash dividends in addition to its existing share buyback and cancellation program.” He continued, “The company is implementing a shareholder return policy that uses more than 30% of ordinary dividend income, along with a portion of investment returns, to fund share buybacks and cancellations or cash dividends,” and “As of May 13, the company had completed the purchase of 400억 won worth of treasury stock, and on April 30, it decided on an interim dividend of 2043억 won (1550 won per share).”

He added, “Considering the full-year 2026 share buyback plan (110 billion won) and the increase in dividend income received from SK hynix, the annual scale of shareholder returns is highly likely to expand further.”

Regarding the target price upgrade, he analyzed, “The rationale for raising the target price is the rise in equity value,” noting that “the value of the company’s stakes in subsidiaries has expanded from 99 trillion won at the beginning of the year to 375 trillion won.” He further emphasized, “As a significant increase in dividend income is expected, expectations for expanded shareholder returns remain valid,” adding, “We believe the trend of improved earnings in key portfolio companies and enhanced per-share value will continue.”