SK Eternix shares more than double in a month, surpassing analysts' top target price

Shares of SK Eternix more than doubled in a month, surpassing the highest target price set by securities firms, as expectations grew that the renewable energy company would benefit from a projected surge in power demand driven by the expansion of AI data centers.

According to Korea Exchange, SK Eternix closed at 80,900 won ($55) on Friday. That marks a 114.57 percent surge from 37,750 won on June 24, a month earlier. Over the same period, the Kospi fell 20.9 percent.

The rally accelerated sharply in recent days. SK Eternix jumped 44.90 percent over five trading sessions from Monday through Friday. During that stretch, institutional and foreign investors led the advance, posting net purchases of 106.8 billion won and 79 billion won, respectively.

The share price has also blown past analysts' targets. Hana Securities raised its target price for SK Eternix by 10 percent to 66,000 won on July 16 — the highest target among securities firms. SK Eternix surpassed even that level in just over a week.

Securities firms expect SK Eternix's growth trajectory to continue. As data center expansion drives a sharp increase in power demand, renewable energy is emerging as a key alternative to meet it. A favorable business environment has taken shape, supported by the government's renewable energy expansion policy and corporate demand to fulfill RE100 — a global initiative requiring companies to source 100 percent of their electricity from renewables.

"On top of the unprecedented rise in power demand triggered by AI, the share of renewable energy as clean energy will climb sharply," said Park Se-ra, a researcher at Shinyoung Securities.

Earlier, the government announced its three major mega-project policies in June, disclosing plans to build 8.4 gigawatts of AI data center capacity in the first phase. The total investment is estimated at around 550 trillion won.

The government projected that the mega-projects would generate a combined 39.7 gigawatts of additional power demand — comprising 6.3 gigawatts for a southwestern semiconductor cluster, 15 gigawatts for semiconductor industry infrastructure in the Greater Seoul area, and 18.4 gigawatts for AI data centers. In response, the government set a target to expand cumulative renewable energy installed capacity to 100 gigawatts by 2030 and raise renewables' share of power generation to more than 30 percent by 2035.

"Following the mega-project announcement, the domestic renewable energy market is entering a demand-expansion phase unlike anything seen before," Park said. "Renewable energy will emerge as a power source with regulatory and commercial advantages in long-term electricity procurement by large off-takers."

A partnership with KKR, the world's largest private equity fund manager, is another positive catalyst. SK Group and KKR signed a definitive agreement to launch a renewable energy joint venture worth around 2 trillion won.

"Through the SK-KKR joint venture, SK Eternix is expected to grow into the largest renewable energy platform in South Korea, with expanded deal structuring capacity and the ability to take on larger projects," said Jo Hye-bin, a researcher at Kyobo Securities.

Yu Jae-seon, a researcher at Hana Securities, said "while specific details have yet to be finalized, if the joint venture focuses on steadily expanding operating income from renewable energy projects, SK Eternix will be able to concentrate on solar power purchase agreement (PPA) development projects," adding that "if existing capabilities are also consolidated, top-line growth should be achievable based on development capacity alone."

According to Kyobo Securities, SK Eternix's second-quarter revenue is estimated at 258.2 billion won, a 298 percent increase from the same period a year earlier. Operating profit is expected to reach 14.4 billion won, up 50 percent year on year.