SK, the holding company of SK Group, is rising more sharply than its affiliates SK hynix and SK Square, buoyed by favorable conditions in the semiconductor sector. The gains are attributed to expectations that SK hynix's earnings improvement, driven by the artificial intelligence (AI) memory boom, will spread across the group, combined with dual-listing regulations and hopes for a re-evaluation of subsidiary values.
According to the Korea Exchange, SK was trading at 827,000 won on Tuesday, up 115,000 won, or 16.15%, from the previous session. During the session, it widened its gains and surged as high as 852,000 won. At the same time, SK hynix was up 7.64% and SK Square up 2.67%, making SK's rise stand out. Its market capitalization surpassed 60 trillion won, overtaking Doosan Enerbility to rank 11th by market value on the KOSPI.
The market sees the spillover effect from SK hynix's earnings improvement extending to the holding company, SK. SK holds about a 31% stake in SK Square, which in turn holds roughly a 20% stake in SK hynix. Expectations for earnings improvements at major affiliates including SK Innovation, SK Telecom, and SK Ecoplant are also being reflected simultaneously, analysts said.
iM Securities recently presented SK in a report as a stock benefiting from the chip spillover effect and dual-listing regulations, raising its target price to 950,000 won. "SK hynix's strong earnings are driving business and financial improvements across SK Group, laying the groundwork for a rise in the value of its investment stakes," iM Securities researcher Lee Sang-heon said. "The introduction of a system that, in principle, prohibits dual listings will resolve concerns over conflicts of interest among shareholders, structurally leading to a narrowing of the discount rate."
Heungkuk Securities also presented an SK target price of 1 million won the previous day, raised from its earlier figure. "The year 2026 will be the first year of a full-fledged earnings turnaround, through significant profit growth driven by strong earnings at SK Square and contributions from SK Innovation and SK Telecom," Heungkuk Securities researcher Park Jong-ryeol said. "With solid earnings momentum and expanded shareholder returns, a re-evaluation of the stock price is expected to continue."
Brokerages also cite SK's still-high discount rate relative to its net asset value (NAV) as a re-evaluation factor. According to iM Securities, SK's net asset value per share is about 950,000 won, leaving a considerable gap from the current share price. Amid rising values of major subsidiaries including SK hynix, the possibility of a narrowing holding-company discount rate is being highlighted, analysts said. In addition, SK's plan to cancel 20.3% of its treasury shares in early 2027 is also stimulating investor sentiment.
