April 27, 2024

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The firm has been seeking to restructure its business since 2000 but the improvement has not been adequately reflected on the company’s value, said analyst Ku Ja-yong. 

The transformation to a holding company system will boost values of both remaining company and the spin-off while streamlining the business structure, said the analyst. 

Eugene Investment and Securities agreed, saying that the spin-off and treasury stock retirement will be positive for its stock price. The securities firm maintained a “buy” recommendation and raised target price to 111,000 won (US$97.19) from 100,000 won. 

Chemicals and biopharma are its key sectors but SK Gas, an investment company on a consolidated basis was larger than its core business, and the spin-off will let each unit to grow on its own, said analyst Kwak Jin-heui.
SK Gas, a subsidiary of SK Chemical Holdings, is attractive in particular, as the industry remains solid and its dividends are high, added the analyst. 

By Hwang You-mee (glamazon@heraldcorp.com)