[Click eStock] "SK Inno, Reflecting Improved Investment Sentiment in SK On"
Meritz Securities analyzed on the 15th that SK Innovation's stock price reflects improved investment sentiment toward its subsidiary SK On. Accordingly, it maintained a buy rating and a target price of 290,000 KRW.
No Woo-ho, a researcher at Meritz Securities, stated, "Since the beginning of the year, the stock prices of the three domestic battery companies have risen by 35% for LG Energy Solution, 25% for SK Innovation, and 24% for Samsung SDI, respectively. This reflects the relatively increased bargaining power of Korean battery manufacturers in the U.S. market compared to overseas competitors, as well as the benefits from the Advanced Manufacturing Production Credit (AMPC) tax incentives." He added, "SK On will start reflecting AMPC from this quarter and is expected to receive benefits of 420.1 billion KRW this year and 642.9 billion KRW next year."
No said, "The background of SK On's business uncertainty and value discount lies in investment resources and fundamentals (such as supply chain management, mass production capacity, and profitability). SK On has secured approximately 8 trillion KRW in investment resources by successfully raising funds through consecutive rounds including pre-IPO. The uncertainty regarding future investment execution has somewhat eased."
He explained, "The recent stock price improvement is judged to be due to improved investment sentiment from consecutive fundraising. Ultimately, the real change in corporate value depends on the potential for fundamental improvement. SK On, which belongs to the Tier 2 group in the battery industry, is expected to undergo a value reappraisal as it supplements business capabilities that were lacking compared to the Tier 1 group. At present, our estimated business value of SK On is 33 trillion KRW."
Hot Picks Today
"Stocks Are Not Taxed, but Annual Crypto Gains Over 2.5 Million Won to Be Taxed Next Year... Investors Push Back"
- "Not Jealous of Winning the Lottery"... Entire Village Stunned as 200 Million Won Jackpot of Wild Ginseng Cluster Discovered at Jirisan
- "Even With a 90 Million Won Salary and Bonuses, It Doesn’t Feel Like Much"... A Latecomer Rookie Who Beat 70 to 1 Odds [Scientists Are Disappearing] ③
- "Rather Than Endure a 1.5 Million KRW Stipend, I'd Rather Earn 500 Million in the U.S." Top Talent from SNU and KAIST Are Leaving [Scientists Are Disappearing] ①
- "How Did an Employee Who Loved Samsung End Up Like This?"... Past Video of Samsung Electronics Union Chairman Resurfaces
He added, "The quarter in which SK On (excluding AMPC) will turn profitable is expected to be the upcoming 4th quarter. If there is no change in the timeline of EV strategies by automobile clients, we estimate SK On's compound annual sales growth rate to be 27% through 2026."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
