[Click eStock] "SKT, One Store IPO Signals Reflection of Subsidiary Value"

Yuanta Securities Issues 'Buy' Investment Opinion and Sets Target Price at 290,000 Won... Closing Price on 18th at 244,000 Won

[Asia Economy Reporter Kum Boryeong] An analysis has emerged that One Store's initial public offering (IPO) will serve as a signal reflecting the value of SK Telecom's subsidiaries.

On the 21st, according to Yuanta Securities, NH Investment & Securities, KB Securities, and SK Securities have been selected as lead managers for One Store's IPO scheduled for next year.

The expected IPO valuation is around 1 trillion KRW. Namgon Choi, a researcher at Yuanta Securities, said, "The company mentions about 1 trillion KRW, and although 2-3 months ago it was considered overly optimistic, the situation has completely changed now. One Store's performance improvement is rapid. Especially, the recent expansion in market share is a very notable change. If they succeed in attracting major game titles in the second half of the year, they could become a game changer in the domestic app store market," he explained.

Researcher Choi added, "Google's mandatory in-app payment for digital content next year paradoxically is expected to lead major domestic content companies to flock to One Store. This could accelerate market share expansion. The business model is even classified as a platform. Considering recent IPO performances and expectations for Kakao Games and Kakao Bank, One Store's expected valuation could easily surpass current common sense," he added.

SK Telecom's dream of becoming an ICT intermediate holding company is expected to be realized in earnest after One Store's IPO. Following One Store's IPO, ADT Caps, SK Broadband, and 11st are expected to enter the IPO stage. Researcher Choi said, "The value of subsidiaries held by SK Telecom is at least 20 trillion KRW. The valuation of One Store applied in calculating the 20 trillion KRW was only 250 billion KRW based on last year's investment attraction. If One Store proves a value exceeding 2 trillion KRW after the IPO, a serious review process of SK Telecom's other investment portfolios will be conducted," he said.

Yuanta Securities has given SK Telecom a 'Buy' investment opinion with a target price of 290,000 KRW. The closing price on the 18th was 244,000 KRW.