There are no autumn leaves. This is about the stock price of SK Group stocks. Since last month, as the stock prices of SK, a holding company, and SK Innovation, a major subsidiary, have plummeted, the market cap of listed companies in the group has evaporated to over 8 trillion won. Among individual investors, a song bursts out, saying, “I fell into hell.”
SK headquarters in Seorin-dong, Jongno-gu, Seoul. yunhap news
Market cap of 8 trillion won since February, 16 trillion won (excluding SK Hynix)
According to the Korea Exchange on the 24th, the market capitalization of 20 affiliates of the SK Group listed on the KOSPI and KOSDAQ was estimated at 189 trillion 5782 billion won. Excluding SK Bioscience (10,442.3 billion won), which entered the stock market on the 18th, it is 179,135.9 billion won. Compared to the end of January (187,366.9 billion won), 8,23 billion won has disappeared. If SK Hynix, which had an increase of 8 trillion won during this period, was removed, the SK Group’s market cap would decrease by more than 16 trillion won from 98.1886 trillion won to 81,9476 billion won.
SK Innovation, a rechargeable battery company, has lost the most weight. Only the reduced market cap is close to 7 trillion won. SK Innovation’s share price, which was 280,000 won at the end of January, plunged 27% to 204,500 won on the 24th. Compared to the highest price set on the 2nd of last month (31,7500 won), the decline reached 35.6%.
The reasons are complex. First of all, the aftermath that the US International Trade Commission (ITC) brought in LG’s hand in a lawsuit between LG Chem and SK Innovation in infringement of trade secrets for electric vehicle batteries was large. SK Innovation has imposed a ban on battery imports in the US for 10 years. Volkswagen’s proposal to use prismatic batteries from 2023 was also a bad thing. SK Innovation, which uses Volkswagen as its main customer, makes pouch-type batteries.
SK shares are going downhill. Graphic = Reporter Park Kyung-min [email protected]
SK Biopharm has plunged 40% since February
The shock from the battery’s foot spread to SK, the holding company of the group. SK shares fell 21.5% from 311,000 won at the end of January to 244,000 won. The market capitalization decreased by 4.4 trillion won. Kim Soo-hyun, a researcher at Shinhan Investment Corp., said, “The stock price of SK Innovation, a major subsidiary, has declined due to weakness.
Bio-related leaders are falling vertically. SK Biopharm’s share price, which caused the’public offering stock craze’ last year, has fallen 40% since last month. The stock price, which jumped to 217,000 won right after listing, was cut in half to 106,500 won on the 24th.
SK Bioscience, which has collected a record amount of subscription margin (64 trillion won), is following a similar trajectory. It is downhill for four consecutive days after rising to 169,000 won on the 18th. It fell 19% during this period. The parent company also fell in series. SK Chemicals, which owns a 68% stake in SK Bioscience, has plunged 36.6% since last month. The share price of SK Discovery, which has a 30% stake in SK Chemicals, also fell 7%.
Nam-gon Choi, a researcher at Yuanta Securities, analyzed, “The decline in the stock prices of SK Chemicals and SK Discovery was not due to the weakening of SK Bioscience, but the result of the disappearance of the value of use of the parent company after listing.” It means that the investment demand for SK Bioscience was concentrated to the parent company before listing, but after listing, the value of the investment decreased and the stock price was weak.
The market cap of listed companies affiliated with SK Group that has shrunk. Graphic = Reporter Park Kyung-min [email protected]
“The atmosphere must be cleared up”
The struggles of individual investors only deepen. The Internet stock community has posted articles such as, “I’m holding on to -40%, I’m in tears,” and “The shareholders are in a vase, but SK doesn’t manage the stock price.” Since last month, individuals have bought SK Innovation stocks worth 6549 billion won and SK Biopharm 5805 billion won worth of net purchases. SK and SK Chemicals also bought 4174 billion won and 2772 billion won respectively.
The stock price outlook is not so bright. An analyst at a securities firm who wanted to remain anonymous said, “In order for the stock price to rebound, the atmosphere must be reversed whether the stock market is revived or the bad news such as the battery lawsuit is cleared up. But it is not easy.” On the other hand, there is also a prospect that the stock price will not fall further as it has been sufficiently adjusted.
Reporter Hwang Eui-young [email protected]
