[Click eStock] "SK Inno, Concerns Over SK On's Stake Decline... Target Price Down"

Yuanta Securities expressed concerns on the 27th that SK Innovation's stake in SK On could decrease from the current 90% to 80%. Accordingly, they maintained a 'Buy' investment rating but lowered the target price to 240,000 KRW.

Hwang Kyu-won, a researcher at Yuanta Securities, stated, "The Capex for the battery subsidiary SK On is 7.5 trillion KRW, but the available cash is 3.6 trillion KRW, requiring 4 trillion KRW in external funding," adding, "Utilizing a Pre-IPO could reduce SK Innovation's stake in SK On."

This concern stems from the financial burden of the growing battery subsidiary. Researcher Hwang analyzed, "In 2024, SK On's Capex is 7.5 trillion KRW, with available cash at 3.6 trillion KRW, necessitating 4 trillion KRW in external funds," and noted, "Using a Pre-IPO could lower the stake in SK On."

The battery business is expected to experience a temporary setback this year. Researcher Hwang predicted, "Operating losses for the battery segment in the first half of 2024 are expected to be 702.3 billion KRW," and forecasted, "Although global battery market demand is projected to increase by 20% compared to last year, SK On's sales volume is expected to decrease by about 30% in the first half."

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