[Click eStock] "SKC Enters Quarterly Operating Profit Era of 100 Billion KRW... Forecasting Record Quarterly Performance"

[Asia Economy Reporter Park Jihwan] Kiwoom Securities maintained its 'Buy' rating and target price of 200,000 KRW for SKC on the 4th, stating that the era of quarterly operating profits exceeding 100 billion KRW has arrived.

Researcher Dongwook Lee of Kiwoom Securities said, "SKC's operating profit for the second quarter of this year is expected to reach 101.7 billion KRW, setting a new record for the highest quarterly figure," adding, "This is attributed to improved performance across all business divisions, including not only the Cash Cow but also new growth engines."

They plan to expand copper foil production capacity from 24,000 tons in 2019 to 250,000 tons by 2025, more than a tenfold increase. This is expected to generate economies of scale as well as advantages in processing costs, labor costs, and customer accessibility.

In particular, the second quarter of this year is expected to record the highest operating profit since the company's founding. SKC's operating profit for Q2 this year is projected to be 101.7 billion KRW, a 93.0% increase compared to the same period last year, marking the highest quarterly figure ever.

Researcher Lee stated, "This is due to improved performance across all business divisions, including the Cash Cow and new growth engines," and added, "Operating profit in the chemical division is expected to be 65 billion KRW, a 190.1% increase compared to the same period last year." This is due to tight PO supply and demand conditions and an increased proportion of high-value-added sanitary PG. In particular, the PG spread in Q2 this year is expected to rise by 182.5% compared to the same period last year.

Operating profit in the industrial materials division is expected to be 17.6 billion KRW, an 18.7% increase compared to the same period last year. Amid favorable conditions in the downstream display, packaging, and industrial sectors, the profit margin of PET film is improving, and sales of eco-friendly products (Eco Label/PLA) are showing an increasing trend. Operating profit in the semiconductor materials division is expected to be 6.7 billion KRW, a 72.3% increase compared to the same period last year. With improved downstream conditions, sales of ceramic structures are expected to increase, and the commercialization effect of a new plant for high-margin CMP Pads is anticipated.

Operating profit in the mobility materials division is expected to be 18.3 billion KRW, a 39.4% increase compared to the same period last year. The copper foil plant continues to operate at 100% capacity, and the increase in battery and electric vehicle sales has led to further price hikes for copper foil. Some sales from the expansion of the No.5 plant are expected to be added in Q2 this year.

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