Update shared on 06 Dec 2025
Fair value Decreased 0.70%Analysts have slightly trimmed their price target on SK Innovation from ₩128,800 to about ₩127,900, citing a more conservative revenue growth outlook, which is partly offset by expectations for stronger profit margins and a higher future earnings multiple.
What's in the News
- SK Innovation announced a private placement of series 1 unregistered unsecured private convertible bonds worth about KRW 600 billion, with zero coupon and maturity in October 2027, convertible at KRW 123,642 per share into roughly 4.85 million shares between late 2026 and 2027 (Key Developments).
- The bond issuance attracted multiple institutional investors focused on green energy and private equity, signaling continued external confidence in SK Innovation's energy transition and battery-related growth strategy (Key Developments).
- The board approved the convertible bond deal, which was scheduled to close on October 31, 2025, providing the company with additional funding flexibility ahead of planned strategic investments (Key Developments).
- SK Innovation plans to introduce a co-CEO structure by appointing Executive President Jang Yong-ho as Chief Executive Officer alongside incumbent CEO Choo Hyeong-wook, with Jang's formal appointment targeted for the March 2026 annual general meeting (Key Developments).
- As part of the governance changes, Choo Hyeong-wook will step down as President of SK Innovation E&S CIC while remaining co-CEO of SK Innovation, indicating a potential reallocation of leadership focus between core and affiliated businesses (Key Developments).
Valuation Changes
- Consensus Analyst Price Target: The fair value estimate eased slightly from about ₩128,800 to approximately ₩127,900, reflecting a modest downward revision.
- Discount Rate: The discount rate applied in valuation edged down marginally from roughly 9.58% to about 9.54%, implying a slightly lower perceived risk or funding cost.
- Revenue Growth: Projected revenue growth was cut significantly from around 2.35% to about 1.24%, indicating a more cautious view on top line expansion.
- Net Profit Margin: The assumed net profit margin increased meaningfully from roughly 1.60% to about 1.99%, suggesting expectations for stronger profitability.
- Future P/E: The future P/E multiple rose from about 18.8x to roughly 20.6x, pointing to a modestly higher valuation multiple despite the softer growth outlook.
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