SK Innovation, the Biggest Beneficiary of Diesel Shortage... Target Price 330,000 KRW

[Asia Economy Reporter Park So-yeon] Samsung Securities has identified SK Innovation as the biggest beneficiary of the diesel supply shortage and set a target price of 330,000 KRW.

According to FN Guide on the 1st, Samsung Securities explained in a recent report that SK Innovation is the largest beneficiary of the diesel supply shortage.

It is expected that the strong refining margin due to the ban on Russian fossil energy imports will continue in the second half of this year.

In particular, since Europe had a high dependence on Russian diesel, import demand for Asian diesel is expected to increase.

SK Innovation's combined diesel and kerosene yield reaches the low 50% range, the highest level among global companies.

The profitability improvement of its battery subsidiary SK On was also mentioned.

Samsung Securities predicted that the fixed cost burden on SK On, which had the most disappointing profitability due to new plant operations in Q4 last year and Q1 this year, will be significantly reduced as the new plant's operating rate increases.

In the second half of this year, it is expected to reduce losses close to the breakeven point, creating an environment where investors can assign value to the battery business.

This content was produced with the assistance of AI translation services.