[Edaily kyoungeun kim Reporter] NH INVESTMENT & SECURITIES announced that it is maintaining its “Buy” rating and target price of 950,000 won for SK(034730), which has entered the final stages of improving its financial structure. The analysis indicates that efforts to improve the group’s financial structure and enhance management efficiency through asset sales and portfolio consolidation are nearing completion, and the company is expected to expand its portfolio with a focus on artificial intelligence (AI), semiconductors, and next-generation energy.
Lee Seung-young, an analyst at NH INVESTMENT & SECURITIES, stated in a report released today, “The improvement of the financial structure has entered its final stages, and the company is expected to expand its portfolio with a focus on AI, semiconductors, and next-generation energy.” He added, “The company plans to sell its 70.6% stake in SK Siltron for 2.3 trillion won, and the proceeds are expected to be used for financial restructuring and shareholder returns.”
He continued, “In the medium to long term, SK Group plans to secure semiconductor production hubs and establish AI data centers. In this process, we expect SK Eco Plant—which handles engineering, procurement, and construction (EPC) within the group—to take center stage,” adding, “A renewable energy joint venture with KKR is also scheduled to launch by the end of this year (with SK holding a 49% stake and KKR holding 51%).”
Second-quarter earnings exceeded the consensus estimate (operating profit of 2.7 trillion won), with revenue of 42.1 trillion won (up 40% year-over-year) and operating profit of 4.8 trillion won (up 2,326%). Strong performance at SK Innovation, driven by factors such as inventory valuation gains, was the primary contributor.
Looking at individual subsidiaries, SK AX posted an operating profit of 62 billion won (+24%), with earnings growing due to the expansion of AI and digital transformation (DX) projects. SK Eco Plant posted an operating profit of 533.6 billion won (+249%), with profits improving due to rising selling prices for DRAM modules and solid-state drives (SSDs) in the Asset Lifecycle division, as well as the full-scale launch of sales from the Yongin Semiconductor Cluster project in the High-Tech division. In contrast, SK Pharmteco continued to post a loss, with an operating loss of 60 billion won, as losses widened due to production schedule delays at major customers in the Synthetics division.