SK Square said on the 14th that it posted a record quarterly profit on a consolidation basis in the second quarter this year, with operating profit of 19.2354 trillion won and net profit of 18.6750 trillion won. Compared with the second quarter last year, operating profit rose 1,273.8% and net profit rose 1,190.5%. Second-quarter revenue was 328.5 billion won, down 7.6% from a year earlier.
On a first-half basis, operating profit came to 27.5137 trillion won and net profit to 27.0498 trillion won. First-half operating profit and net profit each increased about eightfold from the first half last year. It is also a record profit on a half-year basis.
SK Square said the results were driven by SK hynix's strong performance and its focus on the AI and semiconductor portfolio while steadily returning cash to shareholders. SK Square is the largest shareholder of SK hynix, holding about 20% equity.
SK Square's market capitalization was about 147 trillion won based on the closing price on the 13th, up about sixfold from the end of the second quarter last year (about 24 trillion won). Over the same period, its ranking by market cap on the main stock market rose from 23rd to 3rd.
The net asset value (NAV) discount rate narrowed to 38% based on the closing price on the 13th. That is an improvement from the end of the second quarter last year (50.1%). The NAV discount rate refers to the gap between the equity value of a holding company's portfolio and the actual share price (market capitalization). The lower this figure, the more fully the market is valuing the holding company.
To focus on its AI and semiconductor portfolio, SK Square carried out rebalancing (asset readjustment) in the first half. In January, it sold digital advertising company Incross to SK Networks, and in June, it sold app market company ONE store to Nexus.
It is also continuing shareholder return moves. SK Square canceled all 40 billion won worth of treasury shares it acquired in the first half last month. It plans to buy back and cancel an additional 70 billion won in treasury shares by early next year.
SK plans to continue new investments centered on AI and semiconductors while accelerating AX (AI transformation). It is preparing meaningful investments in areas such as the semiconductor value chain and is making preemptive investments in U.S. and Japan AI and semiconductor companies through overseas investment entity TGC Square. SK Square plans to keep executing new investments and shareholder returns to raise its corporate value as a semiconductor investment holding company.
In addition, SK Square created an "AI innovation" unit early this year through an organizational reshuffle to drive SK Square's investment work and portfolio companies' service innovation based on AI. It is strengthening fundamental competitiveness through AX by introducing AI agents into the investment and portfolio value-up process to boost productivity.
Kim Jeong-gyu, president of SK Square, said, "We will actively communicate with shareholders to enhance corporate value and prepare AX innovation and new semiconductor investments."