Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>There is an end of a lock-up period for 55.3 million shares (33% of outstanding shares) for SK Innovation (096770 KS) starting 20 November 2025.</li>
<li>This could potentially result in additional selling by insiders which could negatively impact its share price in the coming weeks.</li>
<li>SK Innovation is currently trading at relatively high valuation multiples. We remain Bearish on SK Innovation.</li>
</ul>


There is an end of a lock-up period for 55.3 million shares (33% of outstanding shares) for SK Innovation (096770 KS) starting 20 November 2025.
This could potentially result in additional selling by insiders which could negatively impact its share price in the coming weeks.
SK Innovation is currently trading at relatively high valuation multiples. We remain Bearish on SK Innovation.


SK Innovation - End of Lockup Period For 33% of Outstanding Shares

<ul>
<li><em><strong>SK Group plans to restructure its renewable energy businesses that could result in asset sales of more than 1 trillion won. </strong></em></li>
<li>SK Group is taking on a major restructuring of its renewable energy businesses, including  including fuel cells, energy storage systems (ESS), and solar/wind power generation facilities. </li>
<li>A consensus has been forming in the local media regarding Chairman Chey's expected divorce payment to his wife Roh So-young to be about 400 billion won to 700 billion won.</li>
</ul>


SK Group plans to restructure its renewable energy businesses that could result in asset sales of more than 1 trillion won. 
SK Group is taking on a major restructuring of its renewable energy businesses, including  including fuel cells, energy storage systems (ESS), and solar/wind power generation facilities. 
A consensus has been forming in the local media regarding Chairman Chey's expected divorce payment to his wife Roh So-young to be about 400 billion won to 700 billion won.


SK: Restructuring of Renewable Energy Business of Nearly 1 Trillion Won & Chey's Divorce Payment

Equity Bottom-Up

<ul>
<li>Three main reasons why SK Inc is our high conviction in 2026 include mandatory cancellation of treasury shares, deep discount to NAV, and the end of divorce for Chairman Chey. </li>
<li>SK Inc has 17.98 million shares in treasury, representing 24.8% of outstanding shares. Among the stocks included in KOSPI200, this is one of the highest percentage of treasury shares.</li>
<li>Our NAV valuation analysis suggests NAV of 28 trillion won or NAV per share of 386,469 won. This represents a 46% upside to its current price.</li>
</ul>


Three main reasons why SK Inc is our high conviction in 2026 include mandatory cancellation of treasury shares, deep discount to NAV, and the end of divorce for Chairman Chey. 
SK Inc has 17.98 million shares in treasury, representing 24.8% of outstanding shares. Among the stocks included in KOSPI200, this is one of the highest percentage of treasury shares.
Our NAV valuation analysis suggests NAV of 28 trillion won or NAV per share of 386,469 won. This represents a 46% upside to its current price.


<ul>
<li>On 16 September, it was reported in the local media that SK Innovation's subsidiary SK Geo Centric plans to sell its entire 35% stake in the Sinopec-SK Petrochem JV.</li>
<li>The transaction is expected to be priced closed to its book value of about 819 billion won. Sinopec is a leading potential buyer. </li>
<li>From 2020 to 2024, SK Geo Centric generated cumulative operating profit of 695 billion won, accounting for 12.7% of SK Innovation's cumulative operating profit in this period. </li>
</ul>


On 16 September, it was reported in the local media that SK Innovation's subsidiary SK Geo Centric plans to sell its entire 35% stake in the Sinopec-SK Petrochem JV.
The transaction is expected to be priced closed to its book value of about 819 billion won. Sinopec is a leading potential buyer. 
From 2020 to 2024, SK Geo Centric generated cumulative operating profit of 695 billion won, accounting for 12.7% of SK Innovation's cumulative operating profit in this period. 


SK Innovation's Subsidiary SK Geo Centric to Sell Its Entire 35% Stake in Sinopec-SK Petrochem JV

Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

<ul>
<li>Korea’s seeing classic sector rotation: H1 hot money is exiting shipbuilding and defense ETFs, with 7% of AUM out in a week, as traders hunt the next wave of flows.</li>
<li>Short-Term plays focus on two angles: policy-driven sectors like retail/dividends, and less-run names. Secondary batteries lead flows, topping local sector ETF net inflows lately.</li>
<li>Sector rotation trades focus on Sept 11 rebalances: TIGER Secondary Battery TOP 10 and KRX Semis. Long-short setups on top names plus rotation flows could spark notable price moves.</li>
</ul>


Korea’s seeing classic sector rotation: H1 hot money is exiting shipbuilding and defense ETFs, with 7% of AUM out in a week, as traders hunt the next wave of flows.
Short-Term plays focus on two angles: policy-driven sectors like retail/dividends, and less-run names. Secondary batteries lead flows, topping local sector ETF net inflows lately.
Sector rotation trades focus on Sept 11 rebalances: TIGER Secondary Battery TOP 10 and KRX Semis. Long-short setups on top names plus rotation flows could spark notable price moves.


Tracing Korea’s Flow Dynamics: Short-Term Sector Rotation Plays

South Korea

SK Innovation Co., Ltd. refines, markets, and distributes oil.  The Company produces a variety of petroleum products, such as gasoline, kerosene, liquefied petroleumgas (LPG), and diesel oil.  SK Energy also manufactures petrochemical p roducts, including paraxylene, synthetic resins, styrene monomer, and ethylene.

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SK Innovation (096770 KS)

SK Innovation - End of Lockup Period For 33% of Outstanding Shares

There is an end of a lock-up period for 55.3 million shares (33% of outstanding shares) for SK Innovation starting 20 November. This could...

Douglas Kim

SK: Restructuring of Renewable Energy Business of Nearly 1 Trillion Won & Chey's Divorce Payment

SK Group plans to restructure its renewable energy businesses that could result in asset sales of more than 1 trillion won.

Douglas Kim

2026 High Conviction Idea: SK Inc

Three main reasons why SK Inc is our high conviction in 2026 include mandatory cancellation of treasury shares, deep discount to NAV, and the end...

Douglas Kim

SK Innovation's Subsidiary SK Geo Centric to Sell Its Entire 35% Stake in Sinopec-SK Petrochem JV

On 16 September, it was reported in the local media that SK Innovation's subsidiary SK Geo Centric plans to sell its entire 35% stake in the...

Douglas Kim

Tracing Korea’s Flow Dynamics: Short-Term Sector Rotation Plays

This post traces liquidity waves in the Korean stock market, highlighting short-term plays driven by sector rotation and flow dynamics.

Sanghyun Park

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