DS Investment & Securities on the 11th said it expects SK's subsidiaries to gain in value and its aggressive shareholder returns policy to continue. It kept its Buy rating and raised the target price to 630,000 won from 450,000 won. SK's closing price in the previous session was 351,000 won.
Researcher Kim Su-hyun at DS Investment & Securities, referring to SK's cancellation of treasury shares, said it was "funding of a size that could enable mega-scale mergers and acquisitions (M&A) in future growth businesses such as artificial intelligence (AI), semiconductors, and biotech," and noted that SK "set aside all options before the Commercial Act revision and chose the most direct method of returning value to shareholders."
SK held a board meeting the previous day and decided to cancel all 14.69 million treasury shares, excluding those for employee compensation purposes, out of about 17.98 million held. Based on the prior day's close, that amounts to 483.43 billion won, about 20% of its market capitalization.
Kim said, "It is also judged that significantly strengthening financial soundness through active portfolio rebalancing over the past two years was a background for this decision." Additional asset sales, including SK Siltron, are currently underway.
SK's dividend payout ratio for 2025 was projected to be around 28%. The dividend per share will increase from 7,000 won in 2024 to 8,000 won in 2025, meeting the condition of more than a 10% increase. Accordingly, SK shareholders will be eligible for separate taxation benefits.
Kim said, "Unlisted subsidiary SK pharmteco has begun producing clinical active pharmaceutical ingredients for Eli Lilly's obesity treatment," adding, "The drug will be used in developing a long-acting formulation that extends the dosing interval of the existing once-weekly injection to once monthly."