[Click eStock] SK's Growth Centered on Four Major Businesses Continues

[Asia Economy Reporter Lee Seon-ae] NH Investment & Securities announced on the 13th that it maintains a buy rating and a target price of 400,000 KRW for SK.

Kim Dong-yang, a researcher at NH Investment & Securities, stated, "Through stable holding company cash flow and successful investment recoveries, shareholder value will be enhanced in 2022, and the new growth portfolio centered on the four major businesses will be strengthened, maintaining solid fundamentals as a ‘professional value investor.’ Currently, the stock price is trading at a 54% discount compared to the net asset value (NAV)."

SK announced a 46 trillion KRW investment plan over the next five years focused on four major businesses in 2021: advanced materials (semiconductor materials, power/compound semiconductors, battery materials), bio (pharmaceuticals, CDMO (Contract Development and Manufacturing Organization)), green (alternative energy, sustainable food, environmental technology, CO2 treatment), and digital.

Subsequently, through investor meetings for each business, the business areas and investment plans were specified, achieving results such as the acquisition of French gene/cell therapy specialized CMO company Yposkesi (bio), acquisition of EV charging company Signet EV, merger with SK Materials (both advanced materials), establishment of a JV with U.S. fuel cell company Plug Power, and investment in U.S. alternative protein company Perfect Day (7.4%) (both green).

Researcher Kim said, "Along with business concretization, a virtuous cycle of investment is expected through the disposal and listing of investment projects and strategic investment attraction to secure investment funds," adding, "The planned 2023 Nasdaq listing of SK Pharmteco and the possibility of SK Siltron’s listing will serve as opportunities to secure investment funds and realize NAV."

Meanwhile, SK’s fourth-quarter performance is estimated to have continued the strong results of the previous quarter with sales of 25.2704 trillion KRW (+31% y-y) and operating profit of 1.6574 trillion KRW (+1,319% y-y).