Shares of SK Square (402340) jumped 9.49% to 225,000 won as of 9:30 a.m. on October 2, boosted by strong performance of its key subsidiary SK hynix (000660) and positive momentum from a share buyback and planned cancellation.
Hyundai Motor Securities raised its target price for SK Square to 243,000 won from 200,000 won, citing improved subsidiary valuations and shareholder-friendly measures.
Analyst Kim Han-i noted, “The strong share price performance of the main subsidiary, SK hynix, lifted its stake value to 52.6 trillion won as of yesterday, driving up net asset value (NAV). The rise in subsidiary shares, ongoing share buybacks, and undervaluation appeal all contributed to gains in September.”
SK Square’s market capitalization surged 38% to 27.2 trillion won as of the end of September from 19.7 trillion won at the end of August, briefly reaching 29.2 trillion won during the month. In the same period, its NAV expanded 30% to 58.2 trillion won from 45.2 trillion won, with the discount rate to NAV narrowing from 56% to 53%.
On September 30, SK Square announced the termination of a trust contract for share repurchases, completing a 100 billion won buyback under the contract period. Shares repurchased between April and September 2023 were previously designated for cancellation as part of a corporate value enhancement plan in November and are scheduled to be retired in January 2025. Additional repurchased shares are also likely to be canceled.
Shares of SK Square (402340) jumped 9.49% to 225,000 won as of 9:30 a.m. on October 2, boosted by strong performance of its key subsidiary SK hynix (000660) and positive momentum from a share buyback and planned cancellation.
Hyundai Motor Securities raised its target price for SK Square to 243,000 won from 200,000 won, citing improved subsidiary valuations and shareholder-friendly measures.
Analyst Kim Han-i noted, “The strong share price performance of the main subsidiary, SK hynix, lifted its stake value to 52.6 trillion won as of yesterday, driving up net asset value (NAV). The rise in subsidiary shares, ongoing share buybacks, and undervaluation appeal all contributed to gains in September.”
SK Square’s market capitalization surged 38% to 27.2 trillion won as of the end of September from 19.7 trillion won at the end of August, briefly reaching 29.2 trillion won during the month. In the same period, its NAV expanded 30% to 58.2 trillion won from 45.2 trillion won, with the discount rate to NAV narrowing from 56% to 53%.
On September 30, SK Square announced the termination of a trust contract for share repurchases, completing a 100 billion won buyback under the contract period. Shares repurchased between April and September 2023 were previously designated for cancellation as part of a corporate value enhancement plan in November and are scheduled to be retired in January 2025. Additional repurchased shares are also likely to be canceled.