Narrative Update on SK Innovation
Analysts have revised their fair value estimate for SK Innovation downward from ₩118,727 to ₩115,895. This revision reflects more cautious assumptions for revenue growth and profit margins in their latest outlook.
What's in the News
- SK Innovation completed a private placement transaction on August 18, 2025, with the deal now closed (Key Developments).
- On July 30, 2025, SK Innovation announced a private placement to issue over 18 million common shares at KRW 111,000 each. The company aims to raise nearly KRW 2 trillion. Major investors include SK Inc. and several new institutional investors. The board has approved the transaction, and shares will have full protection for one year, with the payment due by August 18, 2025 (Key Developments).
Valuation Changes
- Fair Value Estimate has decreased from ₩118,727 to ₩115,895. This reflects a marginal reduction in forecasted company value.
- Discount Rate has been lowered from 11.30% to 10.27%. This indicates moderately reduced perceived risk in future cash flows.
- Revenue Growth projections have fallen from 4.79% to 3.27%. This shows a more conservative outlook on top-line expansion.
- Profit Margin estimates have declined from 2.26% to 2.01%. This suggests slightly lower expectations for profitability.
- Future P/E Ratio has increased from 14.77x to 16.49x. This points to higher valuation multiples expected for the company relative to its forecasted earnings.
Disclaimer
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