April 27, 2024

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[THE INVESTOR] SK Networks’ profits will cease to decline and its earnings will begin to improve systemically, said Hyundai Motor Investment and Securities on Nov. 2, raising the target price to 10,000 won from 9,000 won.

Its third-quarter revenue rose 28.7 percent on-year to 3.8 trillion won and operating profit 32.8 percent to 52.8 billion won, slightly higher than market consensus, said analyst Park Jong-ryeol.

Although its energy retail and Walkerhill hotel did struggle, IT, trade and SK Magic remained strong and boosted the bottom line, said the analyst. 

The earnings guidance confirmed that its profits will not deteriorate any further and has laid grounds to improve systemically by building a secure business portfolio, explained Park. It has been streamlining its business structure and personnel until this year and the effect will be visible from next year, he added.

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