[Alpha Biz= Reporter Kim Sangjin] Hankook Securities projected on the 7th that SK's operating profit for the third quarter will be disappointing, lowering its target price from 210,000 KRW to 200,000 KRW while maintaining a "Buy" rating.

Hankook Securities estimates that SK's consolidated revenue for Q3 will be 31.6 trillion KRW, with an operating profit of 1.7 trillion KRW. This represents a decrease of 7.8% and 34.4%, respectively, compared to the same period last year.

The firm noted that despite positive performances from SK Telecom and SK Square, the operating profit is expected to be weak due to challenges faced by SK Innovation (declining refining margins and operating losses in the battery sector), SK E&S (margin contraction due to persistent weakness in the system marginal price), and ongoing operating losses at SKC.

As a result, Hankook Securities commented that "despite the recent rebound in stock prices, the 12-month forward P/E (price-to-earnings ratio) and P/B (price-to-book ratio) are 5.1x and 0.5x, respectively."

 

 

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