SK Networks Target Price 7,000 Won... 900 Billion Won Cash Inflow Expected Over Next 2 Years

[Asia Economy Reporter Park Soyeon] Mirae Asset Securities has set the target price for SK Networks at 7,000 KRW and maintained a buy rating.

According to FN Guide on the 5th, Mirae Asset Securities recently stated in a report on SK Networks that "due to the benefits of the COVID-19 endemic phase, a performance rebound is expected this year."

Researcher Lee Jaekwang of Mirae Asset Securities said, "With COVID-19 becoming endemic this year, Walkerhill's performance is improving, which is expected to lead to overall performance improvement," adding, "The current valuation is at a historical low level, so we maintain a buy rating."

Researcher Lee explained, "As of the end of 2021, cash stood at 1.4 trillion KRW and is expected to increase by 900 billion KRW over the next two years," attributing this to "the sale of gas station and golf course businesses."

He added, "Last year, an attempt to acquire Zinus was canceled due to opposition from outside directors," and "Since then, FI investments related to blockchain have increased, and it is presumed that the strategy has shifted to a business-type investment company."

Meanwhile, SK Networks recorded an operating profit of 121.9 billion KRW last year, a slight decrease of 1.7% compared to the previous year. This is analyzed to be due to weak performance in other business divisions despite the strong performance of Car Life.

Car Life posted an operating profit of 133.5 billion KRW, up 3.7% year-on-year. Revenue from short-term rental cars in Jeju increased due to overseas travel restrictions. There was also an effect from the rise in used car sales prices caused by reduced new car production due to semiconductor supply shortages.

SK Magic's operating profit was 73.8 billion KRW, down 10.8% year-on-year. Despite high growth in the rental sector, sales of home appliances declined due to intensified competition with major appliance companies.

Information and Communications recorded an operating profit of 64.7 billion KRW, down 15.8% year-on-year, affected by decreased device sales due to semiconductor supply issues.

Global posted an operating loss of 6.3 billion KRW, turning to a deficit. This was due to a sharp drop in sales following the suspension of the steel business.

Walkerhill posted an operating loss of 31.0 billion KRW, continuing its deficit due to the impact of COVID-19, but the deficit narrowed due to efforts to reduce costs.

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