1. SK Square Q2 Earnings Analysis: Unpacking the Surprise

SK Square reported consolidated revenue of KRW 406.5 billion, operating profit of KRW 14,011 billion, and net income of KRW 14,471 billion for Q2 2025. Notably, operating profit surged by a staggering 177.8% year-over-year, significantly exceeding market forecasts. This strong performance was driven by improved earnings from SK Hynix, the turnaround of 11st, and growth across its subsidiaries.

2. Key Investment Highlights: What’s Driving SK Square’s Growth?

  • Robust Investment Portfolio: The solid growth of key subsidiaries like SK Hynix and 11st underpins SK Square’s strong performance.
  • Stable Financial Structure: A low debt-to-equity ratio of 9.84% demonstrates SK Square’s financial health and provides ample room for future investments.
  • Shareholder-Friendly Policies: Initiatives like the treasury share cancellation plan signal a positive commitment to enhancing shareholder value.

3. Investment Strategy and Outlook: Is SK Square a Good Investment?

SK Square’s Q2 results clearly indicate a potential turnaround. However, investors should carefully consider existing risks, such as the global economic slowdown and foreign exchange volatility. The performance of SK Hynix and the success of new investments will likely be major factors influencing future stock prices.

4. Investor Action Plan: Essential Checks Before Investing

  • Continuously monitor the performance of SK Hynix and other subsidiaries.
  • Carefully observe changes in the macroeconomic environment.
  • Make informed investment decisions based on your individual risk tolerance and investment goals.