[Special Stock] SKC Declines on Continued 1Q Loss Forecast

SKC is experiencing a decline from the early trading session. It is interpreted that investor sentiment has weakened due to expectations that the first-quarter earnings will fall short of consensus.

As of 9:33 AM on the 6th, SKC is trading at 110,500 KRW, down 4.13% (4,800 KRW) from the previous day.

On this day, Jaehun Jeong of DB Financial Investment stated, "Due to the sluggish chemical sector and declining profitability in the secondary battery materials segment, an operating loss of 2.1 billion KRW is expected in the first quarter, continuing the deficit."

This is because the secondary battery materials segment is expected to see a decrease in shipments due to inventory adjustments continuing until early this year and weak demand. Additionally, it was analyzed that profitability will worsen due to rising copper prices and electricity costs.

However, it is expected to return to profitability from the second quarter. Researcher Jeong said, "The profitability, which slowed due to the sluggish chemical and secondary battery materials businesses, will gradually improve starting from the first quarter," and evaluated, "SKC's second-quarter sales are projected at 801.6 billion KRW, with an operating profit of 29 billion KRW, marking a return to profitability."