Shares of SK Square, the SK Group's investment-focused intermediate holding company, rose on the 16th. Optimism appeared to be priced in as shares of SK hynix, a key portfolio company, surged.
As of 10:37 a.m. that day, SK Square stock was trading at 204,000 won on the main board, up 1.75% (3,500 won) from the previous session. SK Square has been setting fresh record highs every day since the 12th.
SK Square's share price has risen by nearly 160% compared with the start of the year (Jan. 2). It appears to reflect expectations for earnings improvement and future investment.
First, SK hynix, included as a major portfolio company of SK Square, has risen for 11 straight trading days on the back of gains in semiconductor stocks.
Also, the combined operating profit and loss of SK Square's major ICT subsidiaries in the first half improved by about 50% from a year earlier. T Map Mobility, a key subsidiary, posted its first-ever positive earnings before interest, taxes, depreciation and amortization (EBITDA) since its 2020 launch in the second quarter, at 800 million won.
In addition, SK Square, together with SK hynix and others, executed joint investments in five to six corporations in the United States and Japan and in artificial intelligence (AI) and semiconductor corporations.
Brokerages are also paying attention to SK Square's shareholder-return measures. Ahn Jae-min, an analyst at NH Investment & Securities, said, "Along with the plan to enhance corporate value announced in Nov. last year, it carried out a 200 billion won share buyback and cancellation, and is conducting a 100 billion won buyback through next month," adding, "Active share repurchases and other shareholder-return measures stand out."