BNK Investment & Securities has upgraded its investment rating on SK Square to 'Buy.' The analysis suggests that the increase in the value of SK Hynix's shares will have a positive impact on SK Square's corporate value.
On the 27th, Kim Jang-won, an analyst at BNK Investment & Securities, stated in a report, "SK Square is the largest shareholder holding 20.1% of SK Hynix's shares," and evaluated that "it is directly and indirectly connected to SK Hynix's management performance." He added, "Dividends from SK Hynix can be used as a source for shareholder returns by SK Square," and noted, "The recent joint investment participation in establishing a corporation for overseas semiconductor parts and equipment investment should be understood in the same context."
Analyst Kim also said, "The decision by SK Square to sell its stake in 11st, which failed to go public (IPO), together with strategic investors (SI), appears to be a decision focused on shareholder value," and predicted, "Although it is an investment-specialized company that uses various types of cash flow as investment funds, it will not neglect shareholder returns."
He explained, "SK Square has emerged as an undeniable value by holding controlling power over the company with the largest market capitalization and business value within the SK Group," and added, "The investment rating was upgraded reflecting shareholder value-centered decision-making, the value of held shares, and business prospects."
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