[Click eStock] 'SK Cheomdansojae Growth Strategy' Target Price Maintained

SK REITs (SK Entrusted Management Real Estate Investment Company) will enter the KOSPI market next month. On the 18th, the SK Group headquarters located in Jongno-gu, SK Seorin Building. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Junho Hwang] Daishin Securities maintained SK's target stock price at 400,000 KRW on the 16th after announcing the mid- to long-term growth strategy for its advanced materials business.

SK recently announced a growth strategy to become the world's No. 1 materials company, with key points including securing future core materials through synergy with existing businesses and proactive investments, as well as strengthening capabilities in the materials sector through active investment and collaboration in high value-added new areas.

The estimated EBITDA of SK's advanced materials business this year is around 1.1 trillion KRW, and the company plans to increase EBITDA to 3.4 trillion KRW (CAGR +34%) by 2025. To achieve this, it will invest a total of 5.1 trillion KRW in semiconductor materials (2.7 trillion KRW), power/compound semiconductors (1 trillion KRW), and battery materials (2.4 trillion KRW).

The 2025 targets for each sector are semiconductor materials sales of 4.7 trillion KRW with EBITDA of 2.1 trillion KRW, power/compound semiconductors sales of 1 trillion KRW with EBITDA of 0.4 trillion KRW, and battery materials sales of 3.1 trillion KRW with EBITDA of 900 billion KRW.