SK Square: Time to Take Profits + Why Are There Holdco Discounts in the First Place?

• We are changing our View on SK Square (402340 KS) to Negative.

• The major reason for this change is due to the surge in its share price along with lack of upside relative to its NAV.

• Regarding SK Square, our holdco discount remains 40%. However, if there are real, positive continued efforts to improve corporate governance, this holdco discount could be reduced further.