NH Investment & Securities Raises SK Target Price to 405,000 Won Amid Holding Company Discount
NH Investment & Securities has raised its target price for SK to 405,000 won from 330,000 won, while maintaining a 'Buy' rating, as SK's shares currently trade at a 59.4% discount to net asset value. The upgrade is driven by the increasing value of investment assets and strategic asset sales aimed at improving financial structure and expanding dividends. Additionally, potential policy changes may further enhance SK's position in the market.
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NH Investment & Securities raised its target price for SK to 405,000 won from 330,000 won, maintaining a 'Buy' rating. SK's closing price was 299,500 won, reflecting a 59.4% discount to net asset value (NAV), the highest among major holding companies.
The increase in target price is attributed to the rising value of investment assets like SK Square and SK Telecom. SK is enhancing its financial structure through asset sales and portfolio integration, with expected dividend expansions funded by gains from asset sales such as SK Specialty and the Pangyo data center.
Potential asset sales include SK Siltron and Watson. Additionally, SK's treasury shares constitute 24.8% of common stock, and potential policy changes could further benefit the company, including a mandate to cancel treasury shares and revisions to the Fair Trade Act easing holding company requirements for the semiconductor sector.
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