SK ie technology Stock price
Compare with Peer Group
📊 Peer Group
📈 What is it?
The peer group consists of the companies with the most similar business model. They serve as a benchmark for putting a stock into context.
🧮 How is it selected?
Based on similarity of business model, meaning companies from the same industry with comparable products and a similar customer base. That's the only way to compare apples to apples.
🏛️ Why does it matter?
Whether a stock is cheap or expensive is best judged by comparison. A P/E of 18 or an EV/FCF of 20 can look cheap or expensive depending on the yardstick. The peer group gives you the most accurate one: companies with a similar business model that operate under the same conditions.
🎯 What does it mean for investors?
When a metric sits below the peer average, the stock is valued more cheaply relative to its competitors, and above the average more expensively. A discount to the peer group can be an opportunity, but it can also have a reason (for example lower growth). The comparison is a starting point, not a verdict.
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🧮 Calculation
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = ₩1.39t | Revenue (TTM) = ₩196.31b
Market Cap = ₩1.39t | Estimated Revenue = ₩196.62b
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = ₩2.89t | Revenue (TTM) = ₩196.31b
Enterprise Value = ₩2.89t | Forward Revenue = ₩196.62b
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF) | ex SBC
📈 What is it?
EV/FCF compares a company’s enterprise value with its free cash flow. The metric therefore shows the multiple of current free cash flow at which a company is valued. EV/FCF ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted version.
🧮 How is it calculated?
EV/FCF ex SBC = Enterprise Value ÷ (Free Cash Flow (TTM) − SBC)
🏛️ Why is it important?
EV/FCF provides a valuation based on free cash flow and therefore complements earnings-based valuation metrics such as the P/E ratio. The ex SBC version additionally accounts for the economic impact of stock-based compensation and provides a more conservative view from a shareholder perspective.
🧮 Calculation
🎯 What does this mean for investors?
- A low EV/FCF means that enterprise value is low relative to current free cash flow. The reasons should always be considered in the context of the company and its industry.
- A high EV/FCF means that enterprise value is high relative to current free cash flow. This can, for example, reflect high growth expectations or temporarily weak cash generation.
- When SBC is positive and adjusted free cash flow remains positive, EV/FCF ex SBC is generally higher than the standard EV/FCF.
- The metric is particularly useful for companies with relatively stable and predictable cash flows.
- If free cash flow is negative or very low, EV/FCF has limited usefulness and should not be interpreted like a standard valuation multiple.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🧮 Calculation
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF) | ex SBC
📈 What is it?
Free cash flow shows how much cash remains after a company has covered its operating and capital expenditures. FCF ex SBC additionally deducts stock-based compensation (SBC) to adjust the cash flow for the effect of non-cash SBC.
🧮 How is it calculated?
Free Cash Flow ex SBC = Operating Cash Flow − SBC − Capital Expenditures (CAPEX)
🏛️ Why is it important?
FCF reflects a company’s actual financial strength – independent of reported accounting earnings. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction. FCF ex SBC also deducts stock-based compensation and shows how much cash generation remains after SBC.
🧮 Calculation
🎯 What does this mean for investors?
- High free cash flow indicates that a company has strong financial strength – independent of reported earnings.
- It is often a solid basis for sustainable dividends and share buybacks.
- Declining FCF can be a warning sign, even if reported earnings remain stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🧮 Calculation
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🧮 Calculation
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🧮 Calculation
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net Margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free Cash Flow Margin | ex SBC
📈 What is it?
The Free Cash Flow Margin shows how much free cash flow a company generates relative to its revenue. In simplified terms, free cash flow is calculated as operating cash flow minus capital expenditures. The Free Cash Flow Margin ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted metric.
🧮 How is it calculated?
Free Cash Flow Margin ex SBC = (Free Cash Flow − SBC) ÷ Revenue × 100
🏛️ Why is it important?
The Free Cash Flow Margin shows how efficiently a company converts its revenue into free cash flow. Strong free cash flow can provide financial flexibility for dividends, share buybacks, debt repayment, or further investments. The ex SBC version additionally accounts for the economic impact of stock-based compensation and therefore provides a more conservative view of cash generation from a shareholder perspective.
🧮 Calculation
🎯 What does this mean for investors?
- A high Free Cash Flow Margin shows that a company converts a high proportion of its revenue into free cash flow.
- This can provide greater financial flexibility for dividends, share buybacks, debt repayment, or investments.
- The Free Cash Flow Margin ex SBC additionally accounts for potential shareholder dilution from stock-based compensation.
- The long-term trend is particularly important. Declining margins can, for example, result from higher investments, changes in working capital, or weaker operating performance.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🧮 Calculation
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🧮 Calculation
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Revenue per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🧮 Calculation
🎯 What does this mean for investors?
- A high revenue per employee indicates a scalable and margin-strong business model.
- A low figure may reflect labor-intensive operations or lower value-add.
- Especially helpful when comparing tech companies to industrial or service sectors.
SK ie technology Stock Analysis
Analyst Opinions
16 Analysts have issued a SK ie technology forecast:
Analyst Opinions
16 Analysts have issued a SK ie technology forecast:
SK ie technology Events
Upcoming Event
Past Events
|
JUL
30
Q2 2026 Earnings Call
3 months ago
|
StocksGuide Free
SK ie technology — Q2 2026 Earnings Call
1. Management Discussion
[Interpreted] Yes. Good afternoon. I am Chung Soyoung, Head of the IR Communications team at SK Innovation. Thank you for joining the company's second quarter 2026 earnings presentation.
On today's call, we have with me SK Innovation's CFO, Seo Geon-Gi; Head of the Corporate Finance Planning Office, Tae Gi-rak; and management from each of the businesses.
For the call today, the CFO, Seo Geon-Gi, will first run through the company-wide business results for the second quarter, followed by presentations from each of the business divisions, and then we will have a Q&A session.
Please note that the numbers we are presenting today have yet to be audited by the external auditor and thus are subject to change upon review.
With that, let me invite CFO, Seo Geon-Gi, to present the second quarter highlights and earnings results.
[Interpreted] Good afternoon. This is Seo Geon-Gi, CFO of SK Innovation. Allow me by starting by thanking our shareholders, investors, and analysts for your continued interest in the company.
So I will begin with the highlights of the second quarter of 2026. So first, SK Enmove was able to post solid performance on the back of its product competitiveness in the high-end Group III lubricant base oil market and its global production and sales network.
Amid continuing geopolitical risk, SK Enmove, using its global number one Group III production capabilities and multiple production hubs, was able to address supply chain uncertainties.
In addition, it has been able to use its sales subsidiary in each of the key hubs to quickly and flexibly address to changes in customer demand. So going forward, SK Enmove, with its Group III production competitiveness and global business foundation, will strengthen its stable business structure while also further strengthening its competitiveness as a lubricant base oil provider trusted by the market and customers.
In the case of SK On, in the second quarter of 2026, we have completed the unwinding of the BlueOval SK, which was the JV with Ford. The former BlueOval SK Tennessee factory is now fully owned by SK On under the name SK On Tennessee.
Moreover, as part of this restructuring, the former Kentucky factory is now fully owned by Ford. And SK On will be able to save on approximately KRW 300 billion in depreciation and KRW 200 billion in interest expenses per year, which should ease the financial burden on the company.
In addition, in November, we have signed an equity swap with EVE Energy to swap SKOJ and SK EUE shares. This is expected to close within the quarter. SK On will acquire 100% of SKOJ and fully divest its interest in EUE.
As a result, SK On has gained a more flexible and proactive business framework. So based upon this, it will respond to the EV and ESS customer demand in a more agile manner and strengthen profitability.
In addition, portfolio rebalancing efforts will continue and based upon the market environment and strategic needs, SK On will be able to review strategic alliances and cooperate possibilities in many forms in a more flexible manner. So this was the highlights.
Next, let me talk about the overall performance. In the second quarter, revenue was up by KRW 4.8662 trillion quarter-over-quarter at KRW 29.1572 trillion, driven by stronger revenue across all energy businesses, including refining and lubricants.
On the operating profit side, due to the stronger profits on the lubricants and battery business, it increased by KRW 1.3251 trillion quarter-over-quarter to KRW 3.4873 trillion. On the nonoperating side, the recognition of SK On and SKIET related PRS derivative valuation losses of around KRW 1.2 trillion and SKIET related impairment losses of approximately KRW 1.4 trillion resulted in higher nonoperating losses.
To provide the breakdown in more detail, FX-related losses were KRW 73 billion, product derivative losses, KRW 1.2 trillion, net interest expenses, KRW 251.9 billion, equity method gains, KRW 37.2 billion, and other losses, KRW 1.4 trillion.
Next, let me discuss our financial structure. As of the second quarter 2026, total assets stood at KRW 102 trillion, and this was due to a decrease in cash as net working capital increased and less assets following the closing of BOSK JV unwinding. So it represents a decrease of KRW 3.6 trillion versus 2025 end.
Liabilities were KRW 64.2 trillion, which is a decrease of KRW 5 trillion due to less borrowings and the closing of the BOSK JV. The debt equity ratio was down by 20 percentage points at 170%. Net debt was KRW 23.7 trillion, and as cash balances decreased, it has been up by KRW 1.1 trillion versus the end of 2025.
Next, we will go over the second quarter performance by company. We will have a look back on key companies and provide an outlook for the future. So for each of the results of each company, please refer to Page 6 and on Page 7, we will go over the look back and also outlook. So let us start with SK Energy.
[Interpreted] Good afternoon. This is [ Chu Yungu ], Head of Corporate Planning from SK Energy. Let me discuss the second quarter performance.
SK Energy second quarter operating profit was KRW 651.2 billion, down by KRW 632 billion quarter-over-quarter. Dubai crude, which surged on an average $128 in March, dropped to $79 in June, but the valuation of inventory on book is reflected and on a cumulative basis, so inventory-related gains in the second quarter was still around KRW 560 billion.
When excluding this effect, though the market was strong, profitability has declined due to the government's cap on crude prices and to turnarounds in May and June.
Crude prices and refining margins are expected to show a lot of volatility based on the changes in shipments in the Strait of Hormuz and Red Sea, degree of damages on Russian refineries, and flow changes in the oil and refinery products. So therefore, as uncertainty continues, rather than forecast the future, we will closely monitor the market and try to be flexible and quick to maintain optimal operations.
Thank you. Next we will move on to SK Geo Centric.
[Interpreted] Good afternoon. This is Kim Yoo-Suk, Head of the Management and Planning Office of SK Geo Centric. For the second quarter, with regards to our overall utilization, we actually saw a decrease in the overall products.
And in the third quarter, if we look at the aromatics, because of the stocking there, and also on a seasonal basis, we do believe that there will be some recovery. However, uncertainties on the external side will continue, and these stocks also will be volatile. So we do think that in terms of the overall performance versus the second quarter, it will be flat.
Yes. Next on SK Enmove, we will discuss the performance there.
[Interpreted] Good afternoon. On the lubricants business from SK Enmove CIC, I am [ Kim Mikyung ], Head of Corporate Planning and Development Office. For SK Enmove's operating profits, it was KRW 503.4 billion quarter-over-quarter to KRW 691.9 billion, due to the inventory effect and higher margins stemming from supply issues by peers due to the Middle East situation.
In the third quarter, there could be some volatility, based on the strait opens, but spreads are expected to gradually moderate if our competitor supply issues are solved.
The recent geopolitical risks have pinned the market's attention to our stable supply capabilities based upon multiple production hubs, and the company is able to provide optimal operations using these multiple sites.
In addition, we are able to supply in a timely manner to regional sales hubs and increase [ outsourcing ], which results in a framework for stable supply. Going forward, we will leverage this supply chain capability, and we will continue to provide a differentiated value to customers and further solidify our leadership in the Group III market.
Next is SK Earthon.
[Interpreted] Good afternoon. I am Kim Kyoung-Jun, Head of Planning and Business Support at SK Earthon. SK Earthon's Q2 operating profit due to a decrease in sales volume driven by the shipment schedule of its equity crude in China, decreased KRW 34.8 billion Q-o-Q to record KRW 29.9 billion.
For reference, the aforementioned figures exclude the performance of the Peru block, which, driven by higher oil and gas prices amid the war, recorded operating profit of KRW 79.6 billion, up KRW 16.9 billion Q-o-Q. Accordingly, both SK Earthon's own assets and the Peru block delivered solid performance.
For Q3, geopolitical uncertainty persists, but we are continuing efforts to sustain daily output and improve profitability, including drilling additional production wells at our own blocks in China, Vietnam, and elsewhere.
Next is an update on our key operations. First, at China Block 17/03, the 3 additional production wells drilled to sustain output are being brought online sequentially, with completion expected within August. At Vietnam Block 15-1, we're proceeding as planned with the drilling of 4 additional production wells and the construction of production facilities at the STT field.
In addition, at Vietnam Block 15-1/05, development of the LDP structure is currently underway, encompassing production well drilling and facility fabrication. We're targeting first production in Q4 2026 upon completion of the related development activities.
Finally, at Vietnam Block 15-2/17, drilling of all appraisal wells have now been completed. Based on the drilling results, we'll work with our partners on a detailed analysis of resource volumes and discuss the development plan.
Next is SK On.
[Interpreted] Good afternoon. I am Kim Kyung Hoon, Head of Financial Support at SK On. I will address battery business performance in Q2 2026 and share our outlook for Q3.
Before presenting our Q2 results, I would like to note that starting this quarter, we have changed the financial statement presentation method for tax credit amounts arising under the U.S. IRA tax credit for battery products made and sold in North America.
Previously presented separately from sales as other operating revenue, these amounts are now judged to be substantively reflected in customer price negotiations and transaction terms, given the expansion of our North American business and changes in transaction structures.
Accordingly, the company determined that presenting these amounts together with sales as sales plus other revenue more appropriately reflects the actual operating performance and revenue structure of our North American business. This change constitutes a reclassification of presentation items and has no impact on operating profit, net income, or net assets.
Due to revenue driven by expanded sales volume in Asia, customer compensation payment, and higher AMPC Q-o-Q, came in at KRW 2.94 trillion, a substantial increase from the previous quarter. As for Q2 operating profit, while there were one-time factors at play, I would like to emphasize that thanks to the increasingly visible effects of our cost reduction efforts, a genuine improvement in profitability was evident. As a result, we swung to an operating profit of KRW 821.8 billion.
Turning now to our business outlook. First, in Europe, local production incentive policies and EV-related support policies remain in place. We will leverage our strength in European production bases to enhance operational stability and strengthen our negotiating power with customers.
In North America, we're staying actively engaged with our existing OEM customers as EV demand gradually recovers, and we'll do our best to win and deliver additional orders in the currently robust ESS market.
In particular, we're working quickly -- or rather we are moving quickly to expand orders with customers such as hyperscalers and power utilities, building momentum for SK On's mid- to long-term profitability improvements. We continue to pursue a portfolio rebalancing, including the conclusion of the BOSK joint venture structure and the launch of SK On's standalone plan.
As a result, our fixed cost reduction effects approximately KRW 300 billion in annual depreciation and KRW 200 billion in interest expense will be reflected on a full year basis. Together with our continuously pursued operational efficiency initiatives, these are expected to translate into profitability improvements over the second half of the year.
In the second half, we aim to enhance our responsiveness to market volatility and customer requirements, thereby securing EV sales expansion and ESS order visibility. Thank you.
Next is SK Innovation E&S Business.
[Interpreted] I'm Kang RyunKwon, Head of Management Planning at SKI E&S, and I'm represent on SK Innovation's E&S business. SK Innovation E&S posted a Q2 operating profit of KRW 105.9 billion, down to Q-o-Q as city gas demand softened heading into the off-peak season, and as we carried out plant maintenance to keep power supply stable through the peak summer demand months.
In Q3, we expect [indiscernible] to rise as power demand enters into seasonal peak and oil prices climb. However, with geopolitical instability heightening again, LNG spot market price volatility is expected to be a variable affecting earnings.
That said, the Australia Barossa Gas Field, in which we hold an equity stake, is in the final stage of commissioning, and we expect it to move into full commercial operation within the second half of the year. We'll keep working to sharpen our cost competitiveness while doing our part to strengthen the nation's energy security. Thank you.
[Interpreted] This concludes the presentation we prepared today, and now we will move on to the Q&A session. Before taking questions from the floor, we would like to first address pre-collected questions.
Investors and analysts shared with us many questions, and we've selected some of the questions where a lot of interest was shown. I will introduce the questions in order and invite the relevant business representatives to answer.
[Interpreted] First question concerns our battery business [Technical Difficulty]. Many questions from our investors. I would like to invite SK On to address.
[Interpreted] Head of Financial Support Office at SK On. I will address our battery business turnaround strategy. First, our battery business turnaround is showing visible results driven by structural cost reduction. In Q2, even excluding one-time factors, our earnings improved Q-o-Q through our cost reduction activities.
We're focused on cost reduction as the path to fundamental competitiveness. Cutting material costs through supplier diversification, value engineering, yield, and other loss improvements, and stronger inventory management, while also lowering processing costs and SG&A through automation and AI-driven operational optimization.
We continue to identify and execute cost-cutting initiatives across the board and drive profitability improvement, and we expect even more visible results in the second half.
On EVs in North America, we expect a volume recovery in the second half driven by the reintroduction of California EV subsidies and the recent recovery in demand. In Europe, we are also in discussions with major OEMs on volume stabilization and pricing, and our portfolio is improving as we shift focus toward higher profitability programs.
In sum, cost cuts and recovering volumes are putting us on track for a gradual quarterly profit improvement in the near term, while over the mid- to long-term, we will drive a qualitative shift in our business portfolio through ESS order growth, moving fast on both order taking and production.
[Interpreted] The second question concerns SK Energy's response to the Hormuz Strait situation following the Middle East conflict and its plans going forward. Investors have also shown strong interest in crude procurement security and sourcing diversification. I would like to ask SK Energy to address this question.
[Interpreted] Yes, this is our Head of Corporate Planning at SK Energy. In Q2, we responded to the disruptions in Hormuz Strait transit by purchasing crude at Yanbu and Fujairah and drawing on swaps with government-held strategic resources or reserves.
We cover the remaining volumes through non-Middle East imports. The situation in the Hormuz Strait and the Red Sea is shifting rapidly, and if current conditions persist, some cargoes could be affected. That said, by drawing on cargoes we have already secured and sourcing alternative cargoes and using reserve swaps, we don't expect any issues maintaining normal utilization levels for the time being.
Reducing our dependence on the Middle East won't be easy in the near term, but over the long term, in step with government's crude sourcing diversification policy, we'll look at investing in facility upgrades and in expanding our diversification ratio.
[Interpreted] That concludes our pre-submitted questions. We'll now move on to the live Q&A session. Please note that consecutive interpretation will be provided for this Q&A session, and please state your organization and name before asking your question.
[Interpreted] Now Q&A session will begin. [Operator Instructions] The first question will be provided by Jin-Myung Lee from Shinhan Investment & Securities.
2. Question Answer
[Interpreted] Yes. I have 2 questions that I would like to ask. The first question is that across all of the businesses, for the company as a whole, if you could break down the inventory-related gains or losses, that would be appreciated.
And the second question that I have is that recently there have been news reports that for Hynix's Yongin Cluster, that E&S will actually provide the power source for that. So if you could actually discuss E&S's mid- to long-term overall plans and the target timing for this type of operation?
[Interpreted] Yes, this is Chung Soyoung from the IR Communications team. Thank you for your question. And maybe I can address the first question that you have had with relation to the inventory-related gains and losses across each of the business lines.
So if we first talk about the second quarter in terms of the full company inventory-related gains, including the overall effect of the lower cost of market, that would be KRW 1.1949 trillion, which on a Q-o-Q basis was up by KRW 169.7 billion.
So to break it down by company, it would be for SK Energy, KRW 562.3 billion; SK Geo Centric, KRW 92.2 billion; SK IPC KRW 446.9 billion; and SK Enmove around KRW 93 billion. However, that have been said, please understand that this is an accounting item, and inventory-related gains and losses will fluctuate according to the market conditions.
[Interpreted] So this is Kang RyunKwon, Head of Management Planning at SKI E&S, and maybe I can address the second question. So in the Yongin semiconductor cluster in which SK Hynix's semiconductor fab will actually be located, right now there is a consortium that we have formulated between KOMIPO and SK Innovation E&S to actually build a LNG cogeneration power plant that would be 1,050 megawatts in size.
So this community energy facility will actually provide the steam that is necessary within the cluster for fab number 1 to 4. And by providing a stable energy supply, we do believe that it will contribute to increasing the overall production competitiveness of the semiconductor facility.
So with regards to the timing and the schedule going forward from December of last year, we have actually started the overall construction, which is ongoing, for the LNG pipeline and also the heat source facilities.
And if the overall schedule does not have any issues, then we do believe that from the second quarter of 2030, in a gradual manner, that the overall cogeneration facilities will be able to start the commercial operations.
And so, that have been said, going forward, needless to say, we will continuously focus to do our best to pursue this project and ensure that we can provide a stable energy supply. Thank you.
[Interpreted] The following question will be presented by Jin Ho Lee from Mirae Asset Securities.
[Interpreted] This is Jin Ho from Mirae Asset Securities. I have 2 questions. First concerns your refinery business. I understand that following the stabilization of the U.S.-Iran conflict, could you comment on the potential for further diversification of crude sourcing as well as the possibility of adjusting refinery facilities toward a lighter crude configuration?
And my second question concerns SK Enmove. You talked about how Group III lubricant base oil is performing really well. So given the current base oil market conditions, how much upside do you see for earnings? And are there any additional levers like raising utilization rates to fully capture the favorable environment and drive further earnings improvements?
[Interpreted] This is Chu Yungu from SK Energy. Prior to the war, the Middle Eastern crude took up about 70% of our sourcing. But after the war, that came down to less than 50% and the alternative sources came from the U.S., Canada, and Africa. So in the midst of all of these uncertainties and also conditions that was unavoidable, you can understand it as our flexibility in addressing the concerns.
Given the prices and also the facility configurations that we have, we still prefer the Middle Eastern crude. However, that said, it is very difficult to drastically and swiftly change our dependence on Middle Eastern crude. That said, we are also trying to secure the sourcing stability. So in the mid-to-long-term, in line with the government's crude diversification policy, we will come up with measures.
[Interpreted] This is [indiscernible] from SK Enmove CIC. I will address your second question. As you mentioned, the current Group III base oil environment could work in our favor.
However, that said, how long it's going to last and how much it actually moves the needle will depend on a range of external factors, geopolitical variables, market supply and demand, whether competitors normalize operations. So it's hard to put a specific number on it at this point.
We're optimizing operations based on a full picture, including market conditions, profitability, customer demand, feedstock, and logistics. And we continue to run a stable, efficient supply and sales operation on the back of our global production and sales network.
Going forward, we will flexibly respond to the market volatilities, and work on improving further profitability. Thank you.
[Interpreted] Next question, please.
[Interpreted] The following question will be presented by Hyun-Do Shin from Shinyoung Securities.
[Interpreted] Yes, this is Hyun-Do Shin. There are 2 questions that I would like to ask you. First, since the outbreak of the war, I do think that for a lot of refineries to enjoy the high margin situation, they have pushed back their turnarounds to the second half of the year. For the company in the second half, do we have any turnaround scheduled? And if so, if you could share that with us, that would be appreciated.
The second question that I would like to ask you is about your battery business. After the JV with Ford was unwinded, there was a lot of human resource restructuring that took place in North America. In addition to that, in the global production sites that you have, or for Europe specifically, do you foresee any further capacity adjustments?
[Interpreted] Yes, this is [indiscernible], the Head of [indiscernible] Energy Operation division at SK Energy, and maybe I can address your first question. For us, during the second half of the year in terms of turnarounds, we do have the Number 3 CDU that is planning to go in maintenance across October to November. And for the remaining upgraded facilities that we have, we do not have any plans for further turnarounds.
[Interpreted] Yes, this is Head of the Planning Office at SK On, and maybe I can address the second question that you have. Because the overall recovery in the battery market has been slower than expected, as you are aware in the first quarter at the HQ level and for our overseas subsidiaries, we did conduct some restructuring of our human resources.
So that has been said at the company level. We continue to be very committed to engaging in very strong cost saving measures to ensure that our operations remain efficient, and also to make sure that we can utilize the assets to the maximum level. So this would be our overall priority.
However, that has been said in light of the Middle East uncertainties that are currently taking place. And as crude prices remain at a very high level, we do understand that there is a renewed interest on the consumer side for EV vehicles due to the fact that they actually will provide a lower fuel cost burden for each of the consumers. So we do think that this renewed interest is a positive factor.
In addition to that, in light of the overall global AI DC related demand and also the demand for more greener forms of energy, we do expect that the overall ESS market will grow at a very high rate. So therefore, to convert some of our existing EV lines for ESS purposes, that will continue.
And at the same time, we will also try to increase our ESS order book, so that we can utilize our existing capacity and assets in a more efficient manner, and also operate as such. So right now we're looking into the various ways on how we can do that and executing these plans.
And any additional initiatives that we have in terms of our assets and overall operational efficiencies, of course, we will make sure to share that with the market and also communicate to the market about this when they are available.
[Interpreted] Next question, please.
[Interpreted] The following question will be presented by Park Jieun from JPMorgan.
I have 3 questions. [Indiscernible].
[Interpreted] I am very sorry, but the line that you have right now is breaking up a lot. So maybe could you speak a bit slower, and start from the first question again, because we were not able to hear what the question was on our side.
Sure. So for the first question, could you give us an update on your target for securing more ESS orders by the end of this year?
Second, given the low utilization rate at SK On's battery plants in U.S. and Europe, are you considering any strategic options besides ESS? For example, will it be feasible to sell or repurpose the facilities for AI data centers, semiconductor manufacturing, or some other applications?
And the third question is on lubricants. Can you give us an update on your thermal management solutions business, including refrigerants and HVAC systems?
[Interpreted] This is Kim Kyung Hoon from SK On, and I will address the first question. Domestically, the long duration ESS project we won in February 2026 is a 1.8 [ kilowatt ] order and we are targeting Q3 2027 delivery using our Seosan line.
For the upcoming third round ESS tender, we plan to build on the success factors from the second round central contract market bid to maintain momentum, and we're targeting a meaningful award level. Separately, we recently won some volume in this year's first round of grid-connected ESS bidding. And alongside the long-duration ESS project, we'll keep working hard to secure further orders.
Overseas, we are building out our ESS base primarily around U.S. customers like Flatiron. We are in discussions on the remaining volume with Flatiron, building on a strong customer relationship. We're also continuing to work toward a previously announced global 20 gigawatt per hour order target. We'll disclose specific volumes and customers once orders are finalized and confirmed with customers.
I will continue and address the second question as well. We are reviewing a range of options as part of our broader asset efficiency efforts, but nothing has been decided on repurposing at this point. We'll share details if and when there's something concrete to report.
[Interpreted] This is [indiscernible]. I will first address your question on immersion cooling. With regard to the technology, we are taking steps for certifications with global institutions and prepping for the opening of the market.
With regard to ESS, the thermal solutions that we have developed is already commercialized in the areas of defense and also shipbuilding, and we are currently building on our customer base. When it comes to EV batteries with regard to -- together with global OEMs, we are currently studying the immersive cooling battery packs.
With regard to HVAC, we are currently working in close partnerships with global OEMs, including Hyundai Motor Company. We are currently testing the performance of the refrigerant, and also work to be in compliance with different regulations and also to register substances. And we are currently building upon the business foundation.
When it comes to commercial vehicles, we are currently planning to do real world road testing. And for commercial vehicles, we have completed performance testing for EV buses. And based on the confirmation of the performance, we are currently in real world road testing.
With regard to the further progress, we will provide you with an update in the future. Thank you.
[Interpreted] We will now take the next question, which unfortunately will be the last question.
[Interpreted] The last question will be presented by Woo-Je Chun from KB Securities.
[Interpreted] There are 3 questions that I would like to ask you. First is about your lubricants business. If you look at the overall lubricants feedstock, in actuality, if you look at the April numbers for Bunker C and other types of feedstock, there was a rise and it seemed to be that in June, it hit its highest level.
And thereafter, after June, in actuality, it should have declined. However, if you look at the overall performance for lubricants and base oil, it continued to rise regardless. So is this because the overall spot prices have remained at a high level even in the July months? Or is it because the overall contract prices that we had were taken at a longer term and that affected the overall performance?
The second question that I would like to ask is about your battery business. Towards the second half of the year, with regards to U.S. on the ground ESS production, have there been any issues that the company has been experiencing? And added to that, in the U.S. market, if ESS demand does continue to grow, is it possible for further ESS lines or capacity to be created within the U.S.? So for example, for the idle EV lines that you have as of now, would it be possible to convert further to ESS?
The third question that I also have is related to the battery business again. Right now there have been reports that at the SK Group level, there will be a data center created with the scope of around 5 gigawatts.
So if that is the situation, is -- how much -- for that data center, how many gigawatts of ESS is actually required to build the facilities? And are there any discussions with the SK Group in actually supplying or delivering the ESS that is needed for these data centers?
[Interpreted] So this is Kim Mikyung. Maybe I can address the first question. With regards to base oil, it is true that there is somewhat of a lagging effect that we see. However, I think that if you look at the current situation, because of the facilities that have been at power -- damaged in the Middle East situation and also the variant supply issues that we see, structurally speaking, there is somewhat of an imbalance between supply and demand in the current situation.
So therefore, I think that that is the bigger driver that we see that has led to the strong sales index numbers that we see on prices.
[Interpreted] Yes, this is [indiscernible], the Head of Planning at SK On, and maybe I can address the second question that you have. So first you asked about for U.S. ESS production in the second half, whether there are any issues that we have faced. In our view, we don't have any issues as of now, and in actuality, we are in preparation to enter into the ESS business market.
Secondly you asked -- also asked about building out new ESS lines, and I think that for the line conversion CapEx that is required, I think that according to what method we actually use for conversion, there can be some differences in the numbers.
However, that having been said, for the current overall method that the company is adopting, which is to not change the form factor of the battery in itself, the overall scope of facilities that need to be changed are limited. So it does not require a large CapEx.
So as of now with regards to the ESS line conversion, please understand that it's a bit difficult for us to share more details about this matter. However, the company overall is trying to strengthen its ESS competitiveness in light of the CapEx efficiency that is needed to back this overall initiative.
So maybe just broadly speaking, right now we are looking into converting the lines that we have in North America and also in the Seosan, Korea, facility. And according to how the order book does build up, I think that we could look into further conversion possibilities if necessary.
[Interpreted] So this is Kim Kyung Hoon from SK On, and maybe I can address the third question. So together with other SK Group companies, we do engage in various cooperation and also collaboration to look into the electricity demand patterns that data centers have, so that we can actually build out an AI data center, more suitable ESS solution and package.
So therefore, at a group level, there is various collaboration that is taking place with regards to ESS, and we do want to strengthen our business through these initiatives. That having been said, for the project that you had mentioned specifically, there is nothing specific that we can say as of this time or share with you. And once we do have more information, we will make sure to share when possible.
[Interpreted] With this, we would like to wrap up the Q&A session and also the second quarter earnings conference call for SK Innovation.
So we would like to thank everyone on this call, all of the investors and analysts who have taken time out of your busy schedule to participate. Thank you.
[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]
Financial data from SK ie technology
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Jun '26 |
+/-
%
|
||
| Revenue | 196,314 196,314 |
22%
22%
100%
|
|
| - Direct Costs | 358,883 358,883 |
14%
14%
183%
|
|
| Gross Profit | -162,569 -162,569 |
2%
2%
-83%
|
|
| - Selling and Administrative Expenses | 79,696 79,696 |
19%
19%
41%
|
|
| - Research and Development Expense | 14,545 14,545 |
23%
23%
7%
|
|
| EBITDA | -256,845 -256,845 |
9%
9%
-131%
|
|
| - Depreciation and Amortization | 2,844 2,844 |
48%
48%
1%
|
|
| EBIT (Operating Income) EBIT | -259,689 -259,689 |
10%
10%
-132%
|
|
| Net Profit | -1,580,263 -1,580,263 |
794%
794%
-805%
|
|
In millions KRW.
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Company Profile
Sk Ie Technology Co., Ltd. engages in the manufacture and sale of primary battery and storage battery. It operates through the Lithium-ion Battery Separator and Forward Collision Warning businesses. The company was founded on April 1, 2019 and is headquartered in Seoul, South Korea.
StocksGuide Premium
| Head office | South Korea |
| CEO | Mr. Lee |
| Employees | 346 |
| Founded | 2019 |
| Website | www.skietechnology.com |
