April 24, 2024

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Its new growth portfolio is valued at 13.1 trillion won, including that of SK E&S which has been leading the momentum since last year, said analyst Kim Dong-yang.

Earnings momentum from its four subsidiaries will be maintained in the long term. SK E&S began operations of its new power plant last year, SK Siltron will benefit from strong wafer price and expansion of manufacturing facility this year, while SK biotech will grow organically next year. Further, SK biopharm’s new drug will start earning revenue from 2020, explained the analyst, adding that the companies will contribute up to 19 percent operating profit by 2023, from 2 percent in 2016.

If the bill to strengthen conditions of a holding company is passed, the possibility of merging SK and SK Telecom’s holding company will shrink, and valuation will be highlighted, noted Kim. 

Its current stock price, 40 percent discounted in terms of net asset value, is attractive, said the analyst maintaining a “buy” recommendation. 

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