SK DiscoverySK디스커버리

SK Discovery's shares have risen sharply over the past year, but its margins stay thin and its profits fell in 2024 before recovering.

SK Discovery is a holding company whose value rests mainly on its stakes in subsidiaries such as SK Gas, SK Chemicals and SK Plasma. On trailing figures to H1 2026 it reports ₩11.6T revenue, a 2.8% operating margin and ₩187.6B net income, with liabilities at 135% of equity. The stock closed at ₩66,300 on 19 October 2026, below its 52-week high of ₩73,000.

What stands out

• Trailing revenue is ₩11.6T, but operating margin is only 2.8% and net margin 1.6%, so most sales do not reach profit.
• Net income fell to ₩25.2B in 2024 before rising to ₩129.3B in 2025, showing earnings are volatile.
• Shares are up 31.8% over one year and 27.7% over three months, while the data shows a fair value estimate of ₩77,382 on a NAV basis, which is an internal model rather than an analyst target.
• Trailing free cash flow is negative at about ₩144B, and the price-to-book ratio is 0.3.
• Recent filings include a buyback trust contract signed on 13 October 2026 and a merger decision amendment dated 27 August 2026.

What to watch

• Details and timing of the merger decision and the buyback trust, which the filing titles mention but the data does not explain.
• Next results release, since trailing margins and cash flow are the key test of the 2025 recovery.
• Debt levels, with borrowings of ₩1.0T against cash of ₩2.0T and liabilities at 135% of equity.