[THE INVESTOR] SK Innovation is drawing expectations as it revamps up by investing more in manufacturing facilities for batteries and LiBS, said Kiwoom Securities on Dec. 1, maintaining a “buy” recommendation and 260,000 won (US$239.23) target price. The securities firm suggested it as the “top pick” in oil industry.
On the back of improved earnings since 2015 and strong financial structure, it has been seeking to reshuffle its business portfolio across sectors, said analyst Lee Dong-wook.
To meet growing demand, it has announced plans to invest 840.2 billion won in a battery plant in Hungary and 50 billion won in expanding one in Seosan, which will boost its EV battery manufacturing capacity to 4.7 GWh next year from last year’s 1.1 GWh, and further to 12.2 GWh in 2020, according to the analyst.
The company will also maintain its second-largest global market share in LiBS by aggressively expanding its lines, he forecast. In addition to adding two lines that are under construction, SK Innovation will invest 150 billion won to counter the expansion of market leader Asahi Kasei Moriyama, said the analyst.
By Hwang You-mee (email@example.com)