[Click eStock] "SK Gas Target Price Raised from 170,000 to 220,000 Won"

Shinhan Investment Corp. raised the target price of SK Gas from 170,000 KRW to 220,000 KRW on the 7th.

Shinhan Investment Corp. explained that this is because the company has entered the first year of operation of the Ulsan GPS, where additional profits are expected through the LNG-LPG option business, and they have once again confirmed the company's efforts to enhance shareholder value.

SK Gas decided on a year-end dividend of 6,000 KRW per share, amounting to 8,000 KRW annually. With an expected dividend yield of around 5.1%, this decision reflects consideration for future dividend increases, suggesting a gradual rise in DPS. It is anticipated that a significant increase in the target price is possible if profits from new businesses related to LNG and ESS become visible.

Meanwhile, the 2024 performance is expected to show sales of 7.32 trillion KRW and operating profit of 243.4 billion KRW. The base effect from strong results in Q1 2023 and a continued decline in sales volume until 2024 are expected to impact profit reduction. From the second half of the year, some sales from the operation of the Ulsan GPS (LNG-LPG dual combined power plant) will be reflected, allowing for slight growth in scale.

Despite consecutive events stimulating energy price increases, such as the global winter cold wave and the Yemeni Houthi rebel issue in the Red Sea, LPG prices have remained stable. Park Kwangrae, a researcher at Shinhan Investment Corp., analyzed, "This is considered a result caused by rising interest rates and economic downturn," adding, "Due to LPG price stabilization and the resulting pressure on price reductions, the operating profit margin in 2024 is expected to be in the 3% range."

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