SKC, Undeniable Growth Momentum... Target Price Up 25%

[Asia Economy Reporter Park Ji-hwan] DB Financial Investment on the 27th said that SKC will show an undeniable growth trend, raising its investment opinion to Buy and adjusting the target price up by 24.56% from the previous 57,000 KRW to 71,000 KRW.

Han Seung-jae, a researcher at DB Financial Investment, stated, "SKC's operating profit for the second quarter is expected to be 47.4 billion KRW, in line with the market consensus of 48.1 billion KRW," adding, "As the Mobility materials, which experienced shipment disruptions due to the first quarter strike, normalize, a significant improvement in operating profit is expected."

Chemical and industrial materials are also expected to see an improvement in operating profit due to cost reductions from low-priced propylene input and declines in MEG/PTA prices.

Researcher Han emphasized, "With the expansion of production capacity, Mobility's operating profit forecasts are rising to 60.8 billion KRW this year, 93.4 billion KRW in 2021, and 110 billion KRW in 2022, leading to overall corporate profit improvement." He also predicted that the previously underperforming semiconductor materials will gradually improve profitability through product certification completion and sales expansion.

Han said, "Although the sharply rising stock price is somewhat burdensome, efforts by governments worldwide to reduce carbon emissions have accelerated amid the COVID-19 pandemic," and added, "The growth expectations that electric vehicle sales will surge after the second half of the year due to expanded subsidies for electric vehicles in Europe are expected to continue."

This content was produced with the assistance of AI translation services.