KB Securities noted on the 17th that the sales volume for SK On is rapidly increasing due to the operation of Hyundai Motor Group's new plant in the United States and the preparation for the launch of Blue Oval SK. As a result, the investment opinion remains hold, and the target price is maintained at 25,000 won. The closing price for SK On on the previous trading day was 22,650 won.
According to KB Securities, SK On's revenue for the second quarter of this year is expected to be 86.5 billion won, with an operating loss of 38.9 billion won, aligning with the consensus. The sales volume of separators is projected to increase by 66% compared to the first quarter.
Lee Chang-min, a researcher at KB Securities, explained that "the low base of SK On sales is increasing, and due to some cargo that was delayed in the first quarter being accounted for, a significant increase in sales volume compared to the previous quarter is expected," adding that "the supply of pouch-type battery separator materials to domestic customers in North America has also started, which is positive."
However, he added, "the deterioration of the product mix due to the increased proportion of base materials, the decline in the won-dollar exchange rate, and the low operation rates at the factories in China and Jeungpyeong due to the policy of prioritizing inventory depletion will limit the reduction in operating losses."
For SK On to improve performance, an increase in the operation rate is necessary. Due to the nature of the separator business, which has a high fixed cost burden, the operation rate directly affects revenue.
The researcher noted that "the positive aspect is that efforts to diversify customers are starting to bear fruit," adding that "the customer base is continuing to expand beyond existing major client SK On, and as the U.S. government's efforts to curb China continue, new demand in North America is expected to keep increasing."