[THE INVESTOR] SKC’s operating profit in the first quarter will decline from the previous quarter, said Hana Financial Investment on Feb. 6, lowering the target price to 50,000 won (US$45.63) from 54,000 won.
Operating profit in the fourth quarter of last year was in line with market consensus at 45.5 billion won, but this quarter will slide 7 percent to 42.5 billion won, as the communications sector enters its low season, said analyst Yoon Jae-seong.
The film business will slow down and dent operating profit this year, but the semiconductor materials unit will improve gradually, a positive factor in the long-term perspective, noted the analyst.
The company will seek mid- to long-term growth through investment in CPI film manufacturing facilities, forecast Yoon, maintaining a “buy” recommendation.
By Hwang You-mee (firstname.lastname@example.org)