Brief Korea: SK Holdings SoTP Valuation Sensitivity Analysis and more

In this briefing:

  1. SK Holdings SoTP Valuation Sensitivity Analysis
  2. Naver Spike Overdone – Sell

1. SK Holdings SoTP Valuation Sensitivity Analysis

Skinn

In this insight, we provide an updated sum-of-the parts (SoTP) valuation on SK Holdings (034730 KS). There are many moving parts of SK Holdings and it helps to review the main factors that have been impacting its share price. Our base case valuation of SK Holdings is 326,550 won, which represents a 36% upside from current levels. 

We believe that the 7 MOST IMPORTANT FACTORS impacting the share price of SK Holdings are currently as follows:

1) Share price trend of Sk Innovation (096770 KS)

2) IPO of SK Biopharm 

3) Share price trend of SK Telecom (017670 KS)

4) Changing values of SK Siltron, SK E&S and other private companies

5) Changing values of Sk Materials (036490 KS), SK Networks (001740 KS), and other public companies

6) Shareholder boosting measures (Share buybacks, dividends)

7) The ongoing divorce proceedings between SK Chairman Chey Tae-Won & his wife Roh So-Young

2. Naver Spike Overdone – Sell

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Naver Corp (035420 KS) has risen in a linear manner and testing highs from 2017 and 2018 amid growing bear divergence (non confirmation of new price highs that creates a negative undertone and precedes intermediate corrective cycles) along with deteriorating buy volume into recent strength. These weaker inputs sets up a good short trade in Naver.

RSI break below pattern support will act as a lead signal for price to break noted trendline support near 180k. Initially one would expect a reaction bounce from this trend support.

38.2% retracement lies at 160k and 50% near 150k, representing key pullback objectives.

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