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SK Square. (Photo = Yonhap news) |
[Alpha Biz= Reporter Kim Sangjin] Hyundai Securities has projected that SK Square is likely to lead in excess returns as expectations for value-up in the second half of the year increase. The investment recommendation and target price remain at 'Buy' and KRW 110,000, respectively.
On the 20th, Hyundai Securities stated, "From the end of last year to July 11 this year, the share price increase of SK Square was 102.9%, compared to 70.3% for its subsidiaries. This is a shift from the previous year, where the subsidiaries had shown a larger increase compared to the start of the year."
Hyundai Securities attributed SK Square’s higher stock price increase compared to its subsidiaries to the valuation characteristic of holding companies being discounted relative to net asset value (NAV), and as a response to shareholder return policies. They added, "With a substantial cash reserve of KRW 635 billion, expectations for additional returns are rising."
Since August last year, SK Square has been engaging in stock buybacks and announced plans to repurchase and fully retire KRW 100 billion worth of shares this year. Currently, they hold 1.4 million shares, representing 1.1% of the total number of shares.
Additionally, in April, SK Square's cash reserves increased by about KRW 200 billion due to the sale of its KRAFTON shares, enhancing its capacity for further shareholder returns.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
