Equity Analysis /
South Korea

KR : SKC - Overseas capacity expansion next catalyst

    21 January 2021
    Published byCGS-CIMB

    We expect SKC to accelerate its elecfoil (for battery) capacity expansion (34k tpa in 2020 to 150k tpa by 2025F) given stronger demand from cell makers. SKC should be a major beneficiary of the potential settlement of the lawsuit between LG Chem and SK Innovation (SKI) in 1H21F, in our view. Maintain Add call with a higher SOP-based TP of 150k. We value its battery foil unit at W4tr (secular growth) and chemical unit at W1tr (cyclical upcycle).