Hyundai Motor Securities evaluated on the 28th that SK Square is a clearly undervalued stock with noticeable shareholder returns, and intensive share buybacks are expected in September. The investment opinion remains 'buy,' but considering the adjustment in the value of listed shares, the target price has been lowered by 9% from the previous 220,000 won to 200,000 won. The closing price for SK Square was 139,900 won the previous day.
Kim Han, a researcher at Hyundai Motor Securities, noted, "If expectations for a rise in the stock market resume due to the global macro environment and regulatory changes, there are stocks that will be re-evaluated. After a period of active re-rating among major sectors, stocks with valuation appeal and clear expectations for shareholder returns can regain attention."
He added, "This year is the last year in which the previously announced shareholder return policy applies, and expectations for the next shareholder return policy also remain."
SK Square signed a trust agreement for share buybacks worth 100 billion won from April to September this year. So far, 19 billion won worth of shares have been repurchased, leaving an additional 81 billion won needed. Based on the closing price from the previous day, the remaining number of shares to be bought back is 579,000 shares, and considering the average daily trading volume has been around 410,000 shares since July 11, a positive supply effect is expected, according to Kim's evaluation.
He stated, "While steadily pushing for the liquidity of unlisted subsidiaries, the loss margin of major subsidiaries has also decreased," adding, "In particular, T Map Mobility is improving its profitability as the data business accelerates, and the visibility of turning to a profit based on earnings before interest, taxes, depreciation, and amortization (EBITDA) is also a positive sign."