[Edaily Reporter Shin Ha-yeon ] On the 10th, Heungkuk Securities projected that this year would mark the beginning of a full-fledged earnings turnaround for SK(034730), as SKSQUARE leads the growth in consolidated operating profit, while SK Innovation, SKTelecom, and SK Eco Plant also contribute to improved performance. The firm also viewed positively the potential for a stock price revaluation through expanded shareholder returns. It maintained its “Buy” investment rating and target price of 840,000 won.

Park Jong-ryeol, an analyst at Heungkuk Securities, stated, “With SKSQUARE leading the growth in consolidated operating profit, and SK Innovation, SKTelecom, and SK Eco Plant joining the effort, 2026 is expected to be the first year of a full-fledged earnings turnaround.” He added, “A stock price revaluation is also expected through the effective implementation of expanded shareholder returns.”

Heungkuk Securities projected SK’s third-quarter consolidated revenue at 37.1 trillion won, a 19.4% increase year-over-year, and operating profit at 4.1 trillion won, a sharp 528.2% surge. The firm expects the company to continue posting solid operating results following the previous quarter.

Analyst Park explained, “Earnings will be driven by the continued strong performance of the semiconductor business at SKSQUARE, a core subsidiary, as well as improved refining margins and inventory-related gains at SK Innovation due to rising oil prices,” adding, “Most subsidiaries, including SKTelecom and SKNetworksCo.,Ltd, are also expected to post solid operating results.”

In particular, SKSQUARE is expected to see continued growth in equity method income driven by SK hynix’s strong performance. SKSecurities forecasts SKSQUARE’s third-quarter operating profit at 12.367 trillion won, a significant increase from the 2.196 trillion won recorded in the same period last year.

SK Eco Plant is also expected to contribute to the improvement in earnings as results from its semiconductor and artificial intelligence (AI) data center-related businesses begin to be fully reflected. Major subsidiaries such as SKTelecom and SKNetworksCo.,Ltd are also expected to maintain a solid performance trend.

Consequently, the firm forecasts that SK will emerge from the slump that persisted through last year, with full-year earnings also expected to improve significantly. Heungkuk Securities estimated that SK’s consolidated revenue for this year will reach 152.4 trillion won, a 24.4% increase year-over-year, while operating profit is projected to rise 1,295.2% to 18.3 trillion won. Net income attributable to controlling shareholders is expected to reach 14.39 trillion won, an 800.8% increase from the previous year.

Analyst Park stated, “This is driven by the expected sharp increase in earnings at SKSQUARE, the flagship subsidiary, as well as SK Innovation’s return to profitability in its battery and materials segments, solid performance in its petroleum, lubricants, E&P, and E&S divisions, and improved results at SKTelecom and SK Eco Plant,” adding, “Most subsidiaries are also expected to see gradual improvements in their performance.”

The firm also projected that the company’s financial structure would enter a phase of improvement. SK’s consolidated net debt is estimated to decrease from 50.684 trillion won last year to 44.09 trillion won this year and 26.551 trillion won next year. The debt-to-equity ratio is also expected to decline from 149.2% to 124.1% and then to 109.2% over the same period.

Enhanced shareholder returns were also cited as a factor driving the stock’s revaluation. SK plans to cancel 20.3% of its 24.8% treasury stock holding—excluding a portion reserved for employee compensation—on January 4 of next year. The net asset value (NAV) per share, reflecting the cancellation of treasury stock, was calculated at 1,415,394 won.

Analyst Park noted, “Due to the recent decline in the stock price, the discount to NAV stands at 46.7%, and the 12-month forward price-to-earnings ratio (PER) and price-to-book ratio (PBR) are 2.0x and 0.9x, respectively, indicating that the stock remains undervalued.”

He then outlined the following investment highlights: △the full-scale start of the earnings turnaround in 2026; △enhancement of corporate value through portfolio rebalancing; △recovery in earnings at core subsidiaries and normalization of dividends; △entry into a phase of financial structure improvement and stabilization; and △reduction of the structural discount through strengthened shareholder return policies.