SK Square has achieved its highest quarterly profit ever, bolstered by strong performance from SK Hynix.
On August 14, SK Square reported consolidated revenue of 3.285 trillion won, operating profit of 19.2354 trillion won, and net profit of 18.675 trillion won for the second quarter of this year. While revenue decreased by 19.2% compared to the same period last year, operating profit surged approximately 13.7 times, and net profit increased by 12.9 times.
For the first half of the year, cumulative operating profit reached 27.5137 trillion won, and net profit was 27.0498 trillion won, marking the highest figures ever for a half-year period. This represents an increase of nearly nine times compared to the operating profit of 3.0543 trillion won and net profit of 3.0594 trillion won recorded in the first half of last year.
SK Square explained that the strong performance of its key portfolio company, SK Hynix, along with a business portfolio restructuring focused on artificial intelligence (AI) and semiconductors, and shareholder return policies, have contributed to the increase in corporate value.
The discount rate on net asset value (NAV), a key indicator of corporate value enhancement plans, decreased from 50.1% at the end of the second quarter last year to 38% as of August 13. A lower NAV discount rate indicates that the value of the assets held by the holding company is being reflected in its stock price.
SK Square aims to reduce the NAV discount rate to below 30% by 2028 and achieve a return on equity (ROE) that exceeds the cost of equity (COE) from 2026 to 2028. The company is also working to increase its price-to-book ratio (PBR) to over 1 by 2028.
The restructuring of its portfolio to focus on AI and semiconductors is ongoing. In January, SK Square sold digital advertising company InCross to SK Networks, and in June, it sold app market operator OneStore to Nexters.
The company will continue its shareholder return policy. SK Square has completely retired 40 billion won worth of treasury shares acquired in the first half of the year. An additional 70 billion won in treasury shares will be repurchased and retired by early next year. Since 2023, SK Square has been buying back and retiring treasury shares annually. In new investments, the company is reviewing targets centered on the semiconductor value chain and is investing in AI and semiconductor firms in the U.S. and Japan through its overseas investment firm, TGC Square.
Kim Jeong-kyu, CEO of SK Square, stated, “We will actively communicate with shareholders to enhance corporate value while preparing for AX innovation and new investments in semiconductors.”
* This article has been translated by AI.
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