[THE INVESTOR] LIG Investment & Securities has forecast that SK Networks will turn its business around in the second quarter with operating profit reaching 36.2 billion won (US$ 31.45 million).

Based on improved performance in information communications, gas stations and car-related businesses, LIG said SK Networks is likely to post a 9 percent increase in sales to reach an annual 21.56 trillion won in 2017, while operating profit climbs 29.9 percent to 237.5 billion won. 

For the past three years up to 2015, the firm had posted minus growth in sales.

In particular, a normalization of the company’s rent car business would be a critical factor in the turnaround, it said in a report on July 13.

Further, duty-free sales are expected to narrow their deficit, while the firm’s fashion business picks up sales, LIG said.

By Kim Ji-hyun (jemmie@heraldcorp.com)