April 16, 2024

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[THE INVESTOR] SK Chemical is expanding its business in earnest since it turned to a holding company, said Samsung Securities on Feb. 13, raising the target price to 130,000 won (US$120.08) from 110,000 won.

It has announced that it has absorbed its wholly owned subsidiary SK Petrochemical, securing stable supply of raw materials and internalizing the business to raise efficiency, said analyst Lee Seung-ho.

It also has invested 59.9 billion won in its subsidiary Initz seeking to improve manufacturing facilities and process, eyeing to make use of super engineering plastic for weight reduction for vehicles and applications for electric vehicles, noted the analyst. 

The company’s US$155 million deal with US Sanofi Pasteur to transfer technology for production of flu vaccine and spinning off vaccine business also will show results, forecast Lee.

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