[Featured Stock] SK Innovation Surges 2.4% Intraday on Strong Q2 Earnings Expectations

[Asia Economy Reporter Minji Lee] SK Innovation is showing strength. Although the KOSPI index continues to decline, the stock price is rising on expectations of an earnings surprise in the second quarter.

At 9:10 a.m. on the 7th, SK Innovation was trading at 231,000 KRW, up 2.44% from the previous trading day. The stock price surged to 235,000 KRW after the market opened.

The securities industry is optimistic about SK Innovation. It is expected that the deficit in the battery sector will shrink and the strong performance of the refining sector will be reflected in the earnings.

According to Yuanta Securities, the expected performance for the second quarter of this year is sales of 21.6 trillion KRW and operating profit of 1.6 trillion KRW, with operating profit predicted to increase by 215% compared to the same period last year. By sector, refining is expected to generate 1.3 trillion KRW, petrochemicals 43.5 billion KRW, lubricants 216.6 billion KRW, resource development 267 billion KRW, and the battery sector is forecasted to have a deficit of 236.2 billion KRW.

Hwang Kyuwon, a researcher at Yuanta Securities, explained, “The market consensus operating profit of 939.2 billion KRW is too conservative,” adding, “SK Innovation has been overlooked due to concerns about deficits despite expanding market share in the battery sector and the revaluation of global refining companies’ stock prices.”

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