[Special Stock] S-Oil Hits 52-Week Low Amid 2Q 'Earnings Shock' Outlook

S-Oil recorded a 52-week low during trading on the morning of the 29th. It is analyzed that the stock price was pulled down as concerns about a 'performance shock' due to the decline in oil prices in the second quarter were raised in the securities industry.

As of 10:06 a.m. on that day in the Korea Exchange, S-Oil was trading at 67,600 KRW, down 0.73% from the previous trading day.

The stock price fell to 66,700 KRW, down 2.06% from the previous session immediately after the market opened, marking a 52-week low.

Shinhan Investment Corp. lowered its target price for S-Oil by 11% from the previous level to 93,000 KRW, stating that the company's operating profit for the second quarter is expected to be 32.4 billion KRW, significantly below the market consensus of 384.3 billion KRW.

Lee Jin-myung, a researcher at Shinhan Investment Corp., analyzed, "The refining sector will incur an operating loss exceeding 200 billion KRW, turning into a deficit, and a loss on inventory valuation of around 70 billion KRW will occur due to the decline in oil prices. Additionally, a sharp drop in refining margins will inevitably lead to a slowdown in performance."

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