SK Discovery is a holding company whose core subsidiaries are SK Gas, which runs LPG and power-generation businesses, and SK Chemicals in eco-friendly materials and pharmaceuticals, and which also owns SK Bioscience, SK Plasma, and SK D&D. More than 90% of consolidated revenue comes from SK Gas's energy operations. Through May and June 2026 the company issued a series of subsidiary-management disclosures, including decisions on acquiring and disposing of subsidiary stakes and providing debt guarantees, and in June a report on treasury-share purchases under a trust agreement showed shareholder returns are underway. On the positive side, the market value of its listed-subsidiary stakes (about ₩2.3 trillion) far exceeds its market capitalization (about ₩0.83 trillion), a discount of roughly 65% that well exceeds the usual range, and the 4.2% dividend yield plus share buybacks add to returns. The cautions are that a holding-company discount can persist for a long time without a catalyst, net profit swings sharply by quarter because it depends on equity-method and one-off items, and free cash flow is negative amid power-plant investment.
At-a-glance assessment financial health · growth · profitability · valuation
- For financial companies, debt and interest costs are large by the nature of the business, so the debt ratio and interest coverage cannot be read on the same yardstick as an ordinary company.
- Revenue rose 12.4% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 36.7% higher than a year earlier.
- ROE is 4.5% (controlling-interest basis). It is below the sector average.
- Operating margin is 3.6%.
- Valued against the net asset value (NAV) of its listed holdings rather than a consolidated P/E — see the in-depth valuation for the detailed basis.
Ownership & governance As of 2025-12-31
Largest shareholder Choi Chang-won 41.69% (individual)
Controlling bloc incl. related parties 42.25%
With the controlling bloc holding 42%, the ownership structure is stable.
Net asset value (NAV) assessment Undervalued65% discount to NAV
💡 How to read a holding company · A holding company owns stakes in several subsidiaries. Its P/E swings with equity-method gains and losses on those stakes, so read it only as a rough guide. P/B is more meaningful because subsidiary stakes sit in equity, but book value carries them at low historical cost (so P/B looks higher than reality). The most accurate view is the price against the market value of those stakes (NAV) ↓
Valued against the net asset value (NAV) of its listed holdings rather than a consolidated P/E — see the in-depth valuation for the detailed basis.
Listed subsidiaries ownership
| SK Gas | 72.08% |
| SK Chemicals | 40.79% |
| SK D&D | 31.27% |
| SK Eternix | 30.98% |
🔎 In-depth analysis
- SK Discovery does not make or supply products directly; it is a holding company that owns and manages stakes in operating subsidiaries.
- Its core subsidiary is SK Gas, which supplies LPG as both fuel and petrochemical feedstock and runs the Ulsan GPS LNG/LPG combined-cycle power plant and LNG terminal, as well as PDH (a petrochemical process that converts propane into propylene).
- The second pillar is SK Chemicals, which handles eco-friendly plastic materials such as copolyester and a pharmaceuticals business.
- Beyond these it owns the vaccine company SK Bioscience, the blood-products company SK Plasma, and the real-estate and energy developer SK D&D.
- The bulk of consolidated revenue (more than 90%) comes from SK Gas's energy business, while the holding company's own earnings center on dividends, equity-method income, and brand royalties flowing up from its subsidiaries.
- The latest close is ₩48,050 and market capitalization is ₩836.7 billion.
- The price sits above its 20-day moving average (₩47,898) but below its 60-day line (₩52,247).
- With the short- and medium-term trends diverging, the direction should be read separately.
- The RSI (an auxiliary gauge that weighs up-moves against down-moves over the past 14 days on a 0-100 scale) is 47.5, a neutral level.
- The one-month change is +7.5%, the three-month change is -6.9%, and the position versus the 52-week high is -29.5%.
- Relative strength against the KOSPI is 15 (a 1-99 scale that weighs recent returns against the index over the past year more heavily toward the recent period; higher means stronger than the market).
- That places it in roughly the top 85% of all stocks by strength.
- Over the past three months it lagged the index by 29.1%.
- Chart reading is best done alongside trading volume and disclosure dates.
- On the metrics alone, the undervaluation signal is clear.
- The P/E ratio (how many years of earnings the price reflects) is 6.47x.
- The P/B (how many times book equity the price reflects) is 0.29x, meaning the shares trade at less than a third of net asset value.
- That said, a holding company's book equity records subsidiary stakes at long-ago acquisition cost, so measured against the market value of those stakes the discount is far deeper still.
- The dividend yield is 4.2% (₩2,000 per share), which is high.
- The debt ratio of 325% is on a consolidated basis; it combines the borrowings tied to SK Gas's energy-trading and power businesses, so it is hard to read directly as a risk to the holding company's standalone finances.
- EV/EBIT (an earnings multiple that also reflects debt, the debt-adjusted counterpart to P/E) is 6.8x and EV/Sales (enterprise value divided by revenue) is a low 0.24x.
- Net debt (total borrowings less cash) is about ₩1.6 trillion.
- Because this is a period of large capital spending on power plants and the like, recent free cash flow (the cash actually generated) is negative.
- Results are clearly improving.
- Consolidated revenue in 2025 was ₩10.2 trillion, up 12.4% from the prior year.
- Operating profit surged 109% to ₩361.4 billion.
- In the first quarter of 2026 that trend strengthened further, with revenue up 36.7% and operating profit up 71.4% year on year.
- The gains reflect SK Gas's Ulsan GPS power plant ramping up into full operation, lifting earnings power a level.
- First-quarter net profit jumped to 2.7 times the year-earlier figure.
- That said, it includes a one-off gain from disposing of a subsidiary stake, so multiplying this pace straight through to a full year would overstate matters.
- Stripping out the one-off, the improvement in core earnings is still real.
- Holding-company net profit swings sharply year to year with subsidiary results, equity-method income, and stake sales, making it hard to judge on a single P/E multiple.
- Future earnings hinge on the stabilization of SK Gas's power and LNG businesses.
- Recent disclosures center on subsidiary-management activity typical of a holding company.
- Across May and June 2026 there was a run of decisions to acquire, dispose of, and transfer subsidiary stakes in other entities, along with debt-guarantee decisions.
- These are ordinary activities in which a holding company reshapes its subsidiary portfolio and provides funding support.
- The May disposal and transfer decisions tie in with the first quarter's one-off gain.
- In May the company also filed its quarterly report, a corporate-governance report, and its large-business-group status disclosure.
- In June it filed a report on treasury-share purchases under a trust agreement, showing shareholder returns via buybacks are underway.
- There were no separate large order-win or earnings-shock disclosures.
- The heart of this stock is the size of the holding-company discount.
- Market capitalization (about ₩0.83 trillion) is far too low relative to the market value of its listed-subsidiary stakes (about ₩2.3 trillion).
- The discount of roughly 65% well exceeds the usual 30-50% range for holding companies.
- SK Gas, which accounts for most of the value, has solid earnings from LNG trading and Ulsan GPS power generation.
- SK Chemicals is also sustaining its business, so there is no clear weakness to justify a discount this deep.
- With a 4.2% dividend yield plus buybacks, shareholder returns are underway too.
- The bull case holds when subsidiary earnings stay on course and the group's shareholder-return stance continues.
- The caution is that a holding-company discount can persist for a long time without a catalyst (a re-valuation of listed-subsidiary value, expanded dividends, or a governance event).
- Net profit also swings widely by quarter because it depends on equity-method and one-off items.
- And free cash flow being negative during the power-plant investment period is another point to watch.
🔎 Valuation vs peers Undervalued
Compared against holding companies and its core energy and chemicals subsidiaries; for a holding company, judged by the discount to the value of its held stakes (NAV) rather than by consolidated P/E.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| SK Gas | 8.32x | 0.67x | 8.03% |
| SK Chemicals | 15.81x | 0.31x | 1.98% |
| LG Corp | 21.19x | 0.54x | 2.57% |
| SK | 27.68x | 1.76x | 6.34% |
A holding company should be judged by the discount to the market value of its held stakes (NAV) rather than by its own P/E or P/B. Against roughly ₩2.3 trillion in listed-stake value, market capitalization of about ₩0.83 trillion implies a discount of roughly 65%. That far exceeds the 30-50% discount holding companies commonly carry. The trailing P/E of 6.4x has limits as a gauge because subsidiary net profit is swayed by equity-method and one-off items; reflecting the core improvement trajectory, the forward measure is lower still. SK Gas (P/E 8.5x, ROE 8.0%) and SK Chemicals, which carry the bulk of the value, are each in undervalued territory, so there is no clear earnings deterioration to explain a discount this deep. A point to keep in mind is that without a catalyst to narrow the discount, the undervaluation can persist for a long time.
Price history Close · MA20 · MA60
The latest close is ₩48,050 and the market capitalization is ₩836.7 billion. The price sits above its 20-day moving average (₩47,898) and below its 60-day moving average (₩52,247). 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 47.5, a neutral level. The one-month change is +7.5%, the three-month change is -6.9%, and the position relative to the 52-week high is -29.5%. Relative strength versus the KOSPI is 15 (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 15% of all stocks. Over the past three months it lagged the index by 29.1%. 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 -29.13% / 6M -52.96% / 12M -66.23%
Key metrics vs sector median
Valuation
The P/E of 6.47x is in line with the sector median (6.67x). The P/B of 0.29x is below the sector median (0.49x). 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 4.5%, in line with the sector average (5.0%). The operating margin is 3.6%. The debt ratio is 324.9%, but for financial firms deposits and insurance liabilities count as debt, so it cannot be read on the same yardstick as an ordinary company.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $5.9B | $6.0B | $6.7B | +12.44% ↑ faster |
| Operating profit | $170.1M | $114.4M | $239.5M | +109.41% ↑ faster |
| Net profit | $130.4M | $24.2M | $85.7M | +254.66% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $4.4B | $5.8B | $5.9B | $6.0B | $6.7B |
| Operating profit | $49.3M | $240.1M | $170.1M | $114.4M | $239.5M |
| Net profit | $141.1M | $283.3M | $130.4M | $24.2M | $85.7M |
| Revenue CAGR | 4-yr avg 11.34% | ||||
Revenue rose 12.4% year over year (2023 ₩8.9 trillion → 2024 ₩9.0 trillion → 2025 ₩10.2 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 109.4% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 11.3%. The two-year revenue CAGR is 6.6%. In the most recent quarter (Q1 2026), revenue was 36.7% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- The dividend yield, at 4.2%, is on the high side.
- Revenue grew 12.4% year over year, a sign of growth.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-06-08UpdateFiling of a report on treasury-share purchases under a trust agreement, confirming that buybacks via the trust are underway.A signal of strengthened shareholder returns; favorable to shareholder value by reducing the outstanding share count. Source
- 2026-06-04FilingDecision (amended) to acquire shares and investment securities in another entity by a subsidiary. A stake acquisition tied to the subsidiary portfolio.Ordinary subsidiary-management activity by the holding company that affects the medium- to long-term business structure. Source
- 2026-05-29FilingDecision to dispose of and transfer shares and investment securities in another entity by a subsidiary. A stake-cleanup item tied to the first quarter's one-off gain.A one-off factor that lifted short-term net profit, but one that needs to be distinguished from recurring earnings. Source
- 2026-05-15EarningsFirst-quarter 2026 quarterly report filed. Consolidated revenue of ₩3.29 trillion (+36.7%), operating profit of ₩189.8 billion (+71.4%), and net profit of ₩212.3 billion (+169%).A strong quarter reflecting both core improvement and a one-off gain. Source
- 2026-05-29FilingCorporate-governance report and large-business-group status disclosure. Regular disclosure of the holding-company structure and governance status.A regular disclosure tied to governance transparency, with limited direct impact on results. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Market capitalization versus the value of listed-subsidiary stakes (NAV discount) | ₩836.7 billion | ₩836.7 billion | Confirmed | link |
| First-quarter 2026 consolidated results | revenue ₩3.29 trillion(+36.7%), operating profit ₩189.8 billion(+71.4%), net profit ₩212.3 billion(+169%) | (2026.03) | Confirmed | link |
| 2026 estimated net profit (internal estimate) | approx. ₩260.0 billion | — | Unverified | link |
Recent filings
- 2026-06-08Disclosure
- 2026-06-04Amended filing
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-29Amended filing
- 2026-05-29Material-fact report (amended)
- 2026-05-22Amended filing
- 2026-05-22Disclosure
- 2026-05-18Amended filing
- 2026-05-15PeriodicQuarterly report
- 2026-05-13Disclosure
- 2026-04-29Amended filing
📖 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.