[Click eStock] SKC Incurs Costs at Malai Factory... Target Price Lowered to 250,000 Won

[Asia Economy Reporter Hwang Yoon-joo] Kiwoom Securities maintained a 'Buy' rating on SKC on the 4th, stating that some costs will be incurred due to the construction of factories in Malaysia and Poland, but lowered the target price from the previous 300,000 KRW to 250,000 KRW.

Lee Dong-wook, a researcher at Kiwoom Securities, said, "It is expected that some costs will be incurred this year due to the expansion of regional propylene oxide (PO) plant supply and the construction of factories in Malaysia and Poland."

However, the researcher added, "After the expansion in Malaysia, SKC's copper foil production capacity is expected to reach 102,000 tons next year, making it the world's number one, and sales in the copper foil sector will exceed 1 trillion KRW," and "Considering factors such as reduced electricity costs, overseas investment incentives, low labor costs, and economies of scale, actual profitability is expected to improve further compared to before."

The strong prices of key products were also evaluated positively. The researcher said, "Domestic copper foil export prices in January showed strength at $16,348 per ton, up 18.9% compared to the same period last year due to tight supply and demand, and domestic January PG export prices were $2,861 per ton, an increase of 90.7% compared to the same period last year," he added.

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