The market's calculus is growing more complex over the merger of SK Innovation and SK IE Technology (SKIET). Rather than the effects of post-merger business restructuring, the key variable that will determine future assessments is how much tangible value will actually accrue to existing SK Innovation shareholders.

[LS Securities Maintains 'Hold' Rating, Sets Target Price at 126,000 Won]

On the 27th, LS Securities issued a 'Hold' rating and a target price of 126,000 won for SK Innovation (096770). Analyst Jung Kyung-hee of LS Securities identified in the report whether the merger with SKIET will actually deliver positive results for SK Innovation shareholders as the key judgment factor. The view is that rather than the outward change of combining affiliates, it is necessary to verify how the corporate value and per-share value change after the merger.

[Target Price Cut 28.0%... Reflecting a More Conservative Valuation]

The magnitude of the target price adjustment is also large. The new target of 126,000 won is 28.0% below the 175,000 won LS Securities presented on July 31. This is interpreted as reflecting more conservative criteria than before amid changes in the business structure surrounding the merger and the valuation process.

The stock is rising in intraday trading today. SK Innovation is trading at 112,600 won, up 1,400 won (1.26%) from the previous trading day.

[Market Focus Shifting from 'the Merger Itself' to 'Post-Merger Numbers']

Going forward, the market's focus is likely to shift from the merger itself to the numbers after the merger. Key items to watch include the following:

▲ How SKIET's business value is incorporated into SK Innovation ▲ What changes occur in the financial structure ▲ How the merger terms affect the per-share value of existing shareholders

Ultimately, whether this merger remains a simple intra-group business reorganization or leads to an improvement in SK Innovation's corporate value is expected to be confirmed through concrete merger effects and earnings trends going forward.

[Stock prices may exhibit heightened volatility depending on corporate earnings, industry conditions, merger terms, and market supply and demand. Securities firms' analyses and forecasts may differ from actual future results and do not guarantee returns on any specific stock. Before making investment decisions, it is necessary to comprehensively review the company's official disclosures, financial condition, and business progress. This article is not intended to recommend the purchase or sale of any specific stock. This article was written with AI assistance.]