[Apha Biz=(Chicago) Reporter Paul Lee] Hana Securities raised its target price to 8,000 won from 7,200 won on the 10th, saying SK Networks has normalized its performance through cost efficiency.

On the previous day, SK Networks announced that its consolidated operating profit in the second quarter of this year was 64.6 billion won, up 71.5% from the same period last year.

Sales rose 1.6 percent on-year to 2.1779 trillion won, while net profit fell 62.2 percent to 9.9 billion won.

"Our second-quarter earnings exceeded expectations," Hana Securities said in a report on SK Networks. "All business units showed improved performance year-on-year, mainly due to the cost efficiency of its subsidiary SK Magic and reduced losses in other sectors."

SK Magic is estimated that rental sales are recovering due to the increase in the number of subscription accounts and the launch of new water purifier products, and the portion of online home appliances has expanded.

In the case of SK Rent-a-Car, short-term rental sales fell slightly, but the profit was improved due to an increase in exports of used cars with large margins.

The information and communication business sector benefited from rising sales prices, while Walkerhill's performance recovered more than before the COVID-19 pandemic due to increased room share.

 

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