[Click eStock] "SK Inno Enters Refining Upcycle... Target Price Up"

Yuanta Securities announced on the 1st that it is raising the target price for SK Innovation from 250,000 KRW to 290,000 KRW.

SK Innovation recorded sales of 18.7 trillion KRW and an operating loss of 106.8 billion KRW in the second quarter. The refining segment struggled due to a decline in refining margins and inventory losses, and the battery segment also failed to turn a profit.

However, operating profit is expected to reach 555.1 billion KRW in the third quarter, indicating a successful turnaround to profitability. Following voluntary production cuts by Saudi Arabia and Russia in July and August, the refining segment is estimated to post profits as U.S. refining product supply decreased due to a hurricane in September. The battery segment is also expected to significantly reduce its losses, largely due to the effect of U.S. subsidies.

Hwang Gyuwon, a researcher at Yuanta Securities, said, "The global refining sector is entering an upward cycle from the second half of this year through the first half of 2025 due to facility closures," adding, "We are raising the appropriate stock price by reflecting the refining sector's upcycle entry and the battery subsidy effect."

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