[EQUITIES] ‘SK maintains momentum from new biz’
[THE INVESTOR] SK will post strong earnings in the third quarter, said NH Investment and Securities on Oct. 5 maintaining a “buy” recommendation and 440,000 won (US$389.00) target price.
Boosted by its new portfolio for growth, its revenue in the period will come in at 24.79 trillion won with operating profit of 1.50 trillion won, beating market expectations. It will be able to secure funds to build an LNG power plant in Yeoju, Gyeonggi Province, as its subsidiary SK E&S sells partial stake in wholly owned subsidiary Paju Energy, said analyst Kim Dong-yang.
SK E&S will begin to sell LNG in overseas market next year while SK Biopharm is expected to seek approval for its new drug application for its seizure treatment Cenobamate within this year for launch in the first half of 2020.
Next year the firm will push for IPOs of SK Biopharm, which requires hefty funds, and SK Siltron, which is expected to break earnings record this year, the analyst noted.
By Hwang You-mee (firstname.lastname@example.org)