[Featured Stock] SKIET Plummets on Delayed Earnings Recovery Outlook

On the 5th, SK IE Technology is plummeting due to delayed expectations of earnings recovery. KB Securities and NH Investment & Securities have lowered their target prices.

At 9:05 a.m. that day, SKIET was trading at 32,100 KRW, down 6.69% (2,300 KRW) from the previous day.

KB Securities lowered SKIET's target price from 45,000 KRW to 38,000 KRW and downgraded its investment rating from Buy to Neutral.

Lee Chang-min, a researcher at KB Securities, stated, "Although supply to the new North American electric vehicle OEM customer has begun, a decline in sales volume compared to the previous quarter was inevitable due to weak demand from the major customer SK On. We are lowering both the expected average annual production capacity growth rate and average utilization rate for the next seven years."

NH Investment & Securities also lowered the target price by 6% to 46,000 KRW. Joo Min-woo, a researcher at NH Investment & Securities, evaluated, "Reflecting delays in securing new customers and downward revisions of sales forecasts for captive customers, we have cut next year's EBITDA by 28%."

Meanwhile, SKIET announced that its consolidated operating loss for the third quarter was preliminarily estimated at 73 billion KRW, turning to a deficit compared to the same period last year. Sales were 50.8 billion KRW, down 72.15% from the same period last year. Net loss widened to 36 billion KRW.

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