Hyundai Motor Securities said on the 2nd that SK Square is focusing on enhancing corporations value by narrowing its net worth (NAV) discount and deciding to buy back treasury shares, and projected the stock will move higher. It kept its investment rating at "Buy" and raised its target price to 350,000 won from 243,000 won. SK Square closed the previous trading day at 302,000 won.
Kim Han, an analyst at Hyundai Motor Securities, said, "SK Square recently disclosed a new corporations value enhancement plan centered on reducing the NAV discount to 30% or less by 2028," and noted, "The discount rate, currently around 52% versus NAV, will decline."
Kim also evaluated that "shareholder value enhancement measures are continuing, including the announcement of an additional 100 billion won treasury share purchase and the cancellation of 450,000 shares held as treasury stock."
Kim added, "Losses at consolidated subsidiaries T Map and FSK are narrowing, and efforts to rebalance the portfolio by disposing of equity stakes in 11Street, Dreamus Company and Incross are expected to improve the stock's discount."
In fact, SK Square transferred a 17% equity stake in Dreamus Company for 30.3 billion won, and it has also signed a sale and purchase agreement for its entire equity in Incross. It also disposed of 11Street to SK Planet for 381 billion won.