[Click eStock] SK Square, SK Hynix Quarterly Dividend at Least 40 Billion KRW

[Asia Economy Reporter Junho Hwang] Daishin Securities has set the target price for SK Square at 58,000 KRW. This target price is based on the expectation that the value will increase through quarterly dividends from its subsidiary SK Hynix and future initial public offerings of subsidiaries.

SK Square is a holding company spun off from SK Telecom last year. As of the second quarter of this year, the revenue composition by business segment is approximately 38.6% from investment business, 26.3% from security business, 9.2% from commerce business, 11.8% from platform business, and 14.1% from other businesses. On a separate basis, most of its own income comes from dividend income generated by SK Hynix (the largest shareholder with 20.1%) and others. In the second quarter of this year, it received 225 billion KRW in dividends from last year, and this year, SK Hynix started quarterly dividends, resulting in a fixed dividend inflow of 43.8 billion KRW each quarter.

Going forward, SK Square plans to secure 2 trillion KRW in investment funds through dividends and financing from subsidiaries such as SK Hynix and engage in investment activities. Since its launch last year, it has invested approximately 243.4 billion KRW in investment projects. Representative investments include Korbit (virtual asset exchange, 87.3 billion KRW), Onmind (digital human, 8 billion KRW), Greenlabs (smart farm, 35 billion KRW), HaeGin (global game developer, 25 billion KRW), and Airport Limousine/Seoul Airport Limousine (88.1 billion KRW). Among these, the amount recovered is about 130.3 billion KRW.

Researcher Kim stated, "The target price was calculated by applying a 60% discount rate to the net asset value," adding, "The discount rate formed after the spin-off and new listing ranged from 56% to 74%, with an average of 69%."