SK Networks (001740) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
SK Networks is a holding-style company that houses several businesses as subsidiaries: the information and communications division's mobile-handset distribution is a large share of revenue, alongside SK Intellix's (formerly SK Magic) home-appliance rental, the Walkerhill hotel, the data-solutions firm EnCore and AI investment stakes, with the business reshaped after selling off gas stations and SK Rent-a-Car. Preliminary Q1 2026 results on May 13 confirmed operating profit doubling year on year, a May 22 acquisition of another company's shares continued its AI and new-business investment, and the dividend is ₩250 per share (2.6% yield). What stands out lately is that this is an inflection point where earnings have bottomed and are rising, so the forward valuation burden is lighter than the surface number and the subsidiaries such as SK Intellix and Walkerhill carry real net asset value (NAV), yet a 149% debt ratio brings an interest burden and investment valuation gains that lifted net profit could reverse next quarter, so earnings volatility is high.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Distribution & Wholesale/Retail” (Retail, Consumer Goods & Food), a type typically read first through P/E.
Retail and wholesale businesses run on relatively simple buy-and-sell margins, with sales and profits flowing steadily along with consumer demand. That makes price-to-earnings (P/E) — the share price against the profits the company earns — the natural first lens.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue fell 11.9% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 6.5% higher than a year earlier.
- ROE is 2.5% (controlling-interest basis). It is above the sector average.
- Operating margin is 1.5%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2025-12-31
Largest shareholder SK 43.9% (corporate)
Controlling bloc incl. related parties 44.75%
With the controlling bloc holding 45%, the ownership structure is stable.
🔎 In-depth analysis Reading
SK Networks is a holding-style company that houses several businesses as subsidiaries. A large share of revenue comes from the headquarters' information and communications division's mobile-handset distribution, supplying smartphones to carriers and running distribution networks. The second pillar is the subsidiary SK Intellix (formerly SK Magic), which makes home appliances such as water purifiers and air purifiers and sells them on a rental (subscription) basis. The third is Walkerhill Hotels & Resorts, which operates premium hotels and resorts in Seoul. Added to these are the data-solutions subsidiary EnCore, trading of general and chemical products (Glowide), and AI-related investment stakes. Having sold off the gas-station and car-rental (SK Rent-a-Car) businesses that were once its mainstays, its revenue base itself shrank, but the remaining business has been reshaped around distribution, rental, hotels and investment.
The latest close is ₩7,730 and the market capitalization is ₩1.6 trillion. The price sits above its 20-day moving average (₩7,654) and below its 60-day moving average (₩9,441). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 46.6, a neutral level. The one-month change is -15.3%, the three-month change is +15.7%, and the position relative to the 52-week high is -45.9%. Relative strength versus the KOSPI is 70 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 70% of all stocks. Over the past three months it outpaced the index by 36.0%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
On the surface the valuation metrics look expensive. The P/E ratio (how many times one year's earnings the price represents) is a high 38.5x. But that figure is based on last year's (2025) net profit of ₩49.8 billion and carries a trap, because the company is in a phase of bottoming and rising in earnings. The P/B (how many times net assets the price represents) is 0.75x, around book net assets. For a holding company, one must account for the fact that subsidiary stakes are carried on the books at low acquisition cost, making net assets look smaller than their real value. Profitability is still thin: ROE (how much is earned in a year on equity) is 2.5% and the operating margin just 1.3%. The debt ratio (debt against equity) of 149% is on the high side, and the interest burden has weighed on earnings. Cash generation, though, is not bad: FCF yield (the ratio of cash actually earned against market cap) is 7.4%, with steady cash coming in from rental and hotels. EV/Sales (enterprise value including debt divided by revenue) is a low 0.49x.
Revenue has trended down for five years (₩11.0 trillion in 2021 to ₩6.7 trillion in 2025). But this is not weakness; it is the result of winding down low-margin businesses such as gas stations and car rental. In effect it cut revenue and kept only the profitable businesses. Indeed, the earnings metrics turned direction: from a net loss (-₩0.7 billion) in 2023 to profits of ₩47.8 billion in 2024 and ₩49.8 billion in 2025. The decisive signal is Q1 2026. Revenue was ₩1,743.4 billion (+6.5%), operating profit ₩33.4 billion (+102.4%), and net profit ₩42.7 billion, a turn to profit from a loss in the year-earlier quarter. This resulted from SK Intellix's expanding rental subscriptions, Walkerhill's tourism recovery, and valuation gains on an AI investment fund overlapping. This year's operating profit is highly likely to far exceed last year's (₩86.3 billion). The company expects even growth across all divisions: information and communications, Walkerhill and SK Intellix.
Recent disclosures cluster around results and governance restructuring. The May 13 fair disclosure of preliminary Q1 2026 results confirmed operating profit doubling year on year. On May 7 it pre-announced an investor briefing (IR) and, together, a pre-announcement of settled results. On May 22 there was an acquisition of another company's shares (voluntary disclosure), read as an extension of deploying capital into AI and new-business investment. On May 29 the corporate governance report and a large-business-group status filing were disclosed. The dividend is ₩250 per share (2.6% yield), a relatively high payout ratio against net profit.
The points to watch are clear. The P/E on last year's earnings looks high, but the company is at an inflection point where earnings have bottomed and are rising. Q1 operating profit doubling is the evidence. On this year's expected earnings the valuation burden is far lighter than the surface number. As a holding company, though, it should not be judged by P/E alone. The real value lies in the net asset value (NAV) of the subsidiaries it holds, such as SK Intellix and Walkerhill. The strong case is when SK Intellix's rental expansion and Walkerhill's tourism recovery continue and the AI investments bear fruit. The weak case is when the interest burden of a 149% debt ratio keeps eroding earnings, or the investment valuation gains that lifted net profit reverse next quarter. That net profit is heavily driven by non-cash valuation gains is a factor that raises earnings volatility.
🔎 Valuation vs peers Inconclusive
A peer set that considers operating-holding, trading and conglomerate characteristics together. Officially classified under 'wholesale,' its substance is that subsidiary-stake value is the core, so comparing it with holding companies and trading houses fits better than with pure distributors.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| LX International | 10.22x | 0.51x | 3.67% |
| Lotte Corporation | 0.00x | 0.38x | -10.66% |
The surface P/E of 38.5x looks expensive on its own, but it is based on last year's net profit of ₩49.8 billion, an earnings trough. For an earnings-inflection stock whose Q1 operating profit doubled, last year's P/E distorts the true valuation. On this year's expected earnings the burden is far lighter than the surface. That said, given its holding-company character, high or low valuation cannot be judged by P/E alone. The real value lies in the net asset value (NAV) of subsidiaries such as SK Intellix and Walkerhill, which is not fully reflected in book net assets. A P/B of 0.95x being higher than pure trading and holding peers reflects AI-transition expectations already priced in. So this is an inconclusive range where subsidiary value and the durability of the earnings recovery must be weighed together.
Price history Close · MA20 · MA60
The latest close is ₩7,730 and the market capitalization is ₩1.6 trillion. The price sits above its 20-day moving average (₩7,654) and below its 60-day moving average (₩9,441). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 46.6, a neutral level. The one-month change is -15.3%, the three-month change is +15.7%, and the position relative to the 52-week high is -45.9%. Relative strength versus the KOSPI is 70 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 70% of all stocks. Over the past three months it outpaced the index by 36.0%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M +36.03% / 6M +20.33% / 12M -13.14%
Key metrics Computed vs sector median
Valuation
The P/E of 31.12x is above the sector median (10.99x). The P/B of 0.75x is above the sector median (0.62x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is 2.5%, above the sector average (2.0%). The operating margin is 1.5%. The debt ratio is 176.7%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $5.2B | $5.4B | $4.7B | -11.91% ↓ slower |
| Operating profit | $56.6M | $80.0M | $60.6M | -24.25% ↓ slower |
| Net profit | -$499,480 | $33.6M | $35.0M | +4.15% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $7.7B | $6.8B | $5.2B | $5.4B | $4.7B |
| Operating profit | $85.7M | $108.3M | $56.6M | $80.0M | $60.6M |
| Net profit | $69.3M | $60.7M | -$499,480 | $33.6M | $35.0M |
| Revenue CAGR | 4-yr avg -11.55% | ||||
Revenue fell 11.9% year over year (2023 ₩7.5 trillion → 2024 ₩7.7 trillion → 2025 ₩6.7 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 24.2% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is -11.6%. The two-year revenue CAGR is -4.9%. In the most recent quarter (Q1 2026), revenue was 6.5% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- The dividend yield, at 3.2%, is on the high side.
Points to watch
- Revenue fell 11.9% year over year (3-year trend: mixed).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-13EarningsFair disclosure of preliminary consolidated Q1 2026 results — revenue ₩1,743.4 billion (+6.5%), operating profit ₩33.4 billion (+102.4%), net profit ₩42.7 billion (a turn to profit from a loss in the year-earlier quarter)Operating profit doubling year on year confirms entry into an earnings recovery phase. SK Intellix subscription expansion, Walkerhill tourism recovery and investment valuation gains all contributed. Source
- 2026-05-07IRNotice of an investor briefing (IR) and pre-announcement of settled-results disclosureIn an earnings recovery phase, the IR explains the business transition and investment plans to the market. A re-valuation catalyst over the medium term. Source
- 2026-05-22FilingDecision to acquire another company's shares and equity securities (voluntary disclosure, corrected filing)An extension of deploying capital into AI and new-business investment. A short-term cash outflow but secures medium-term growth options. Source
- 2026-05-29FilingDisclosure of the corporate governance report and large-business-group status — reconfirming the holding-style business structureOfficially confirms the subsidiary-centered governance. A basis for applying a holding-company (NAV) view of the valuation. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 operating profit | ₩33.4 billion(+102.4% YoY) | ₩33.4 billion(+102.4% YoY) | Confirmed | link |
| Q1 2026 net profit | ₩42.7 billion | ₩42.7 billion | Confirmed | link |
| 2026 expected net profit (in-house estimate) | approx. ₩120.0 billion | — | Unverified | link |
| Business structure (holding-style) | + SK + + | — | Confirmed | link |
Recent filings Source
- 2026-05-29OwnershipLargest-shareholder ownership change report
- 2026-05-29OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-29Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-22Amended filing
- 2026-05-15PeriodicQuarterly report
- 2026-05-13EarningsFair-disclosure notice
- 2026-05-07Disclosure
- 2026-05-07EarningsEarnings disclosure
- 2026-05-07OwnershipOwnership-change filing
- 2026-05-07OwnershipLargest-shareholder ownership change report
- 2026-05-07OwnershipOfficers'/major-shareholders' holdings report
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.