Business · Companies · 10 hrs ago
SK Chemicals’ profit beat forecasts, but Samsung Securities cut its target price
SK Chemicals reported higher third-quarter sales and operating profit than a year earlier, with operating profit also beating market expectations.
Samsung Securities lowered its target price from 68,000 won to 64,000 won, but kept its buy rating.
The brokerage said weaker profitability in the chemical business is expected as sales volumes fall and costs rise.
Meanwhile, SK Bioscience’s smaller operating loss helped lift results; the subsidiary reported a loss of 11.2 billion won for the quarter.
Samsung Securities said SK Chemicals’ assets appear undervalued, despite its forecast that the company’s return on equity will improve in 2027.
The company is expected to strengthen its shareholder-value strategy next year, as investors seek action to reflect the value of its assets in its share price.
SK Chemicals reported third-quarter operating profit 9.4% above the market consensus, but Samsung Securities cut its target price on concerns about weaker chemical-business profitability.
Consolidated revenue rose 21.5% year on year to 740.8 billion won, while operating profit increased 115.8% to 33.6 billion won.
Improved results at subsidiary SK Bioscience helped lift earnings, as its operating loss narrowed more than Samsung Securities had expected.
Green Chemicals operating profit fell 37% from the previous quarter to 15.4 billion won.
Samsung Securities lowered its target price from 68,000 won to 64,000 won but maintained its buy rating.
- Who
- SK Chemicals; Samsung Securities issued the analysis.
- What
- SK Chemicals’ third-quarter operating profit beat market expectations, but Samsung Securities lowered its target price over concerns about chemical-business profitability.
- When
- The article was published on November 9, 2026; it says Samsung Securities issued its analysis on the 10th.
- Where
- Not stated
- Why
- Samsung Securities expected weaker profitability in the core chemical business, despite the earnings beat and improved results at SK Bioscience.
This story does not have two clearly opposing sides.
SK Chemicals reported revenue of 740.8 billion won and operating profit of 33.6 billion won.
Samsung Securities cut its target price from 68,000 won to 64,000 won and maintained its buy rating.
- Third-quarter revenue
- 740.8 billion won, up 21.5% year on year
- Third-quarter operating profit
- 33.6 billion won, up 115.8% year on year
- Market consensus
- Operating profit of 30.7 billion won
- Revised target price
- 64,000 won, down from 68,000 won
- 2027 EBITDA estimate
- Cut 21% to 276 billion won from 350 billion won
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What people are saying
Investors are likely to demand the company’s own efforts to revalue its assets, and the company is also expected to pursue a change in strategy to enhance shareholder value.