{"id":6140,"date":"2021-06-29T16:53:37","date_gmt":"2021-06-29T07:53:37","guid":{"rendered":"https:\/\/askinno.com\/global\/?p=6140"},"modified":"2021-06-29T18:33:25","modified_gmt":"2021-06-29T09:33:25","slug":"yuanta-securities-says-sk-innovation-may-have-earnings-surprise-in-2nd-quarter-raising-target-stock-price","status":"publish","type":"post","link":"https:\/\/askinno.com\/global\/archives\/6140","title":{"rendered":"Yuanta Securities says SK Innovation may have earnings surprise in 2nd quarter, raising target stock price"},"content":{"rendered":"

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Yuanta Securities is expecting that SK Innovation will achieve profit increase in the second quarter of this year, after a hard year due to COVID-19 pandemic and fallen oil price.<\/span><\/p>\n

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In a report released on June 29th<\/sup>, analyst Kyu-won Hwang of Yuanta Securities Korea said \u201cSK Innovation is expected to have earned KRW 10.8 trillion in sales and KRW 541.8 billion in operating profits in Q2 2021, which is an earnings surprise that is 51% higher than the consensus,\u201d and raised the company\u2019s target stock price up to KRW 360,000.<\/span><\/p>\n

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Hwang explained, \u201cThe expected amount of operating income of SK Innovation is not only an improvement of KRW 981.5 billion year-on-year, but also an increase of 8% compared to last quarter\u2019s KRW 502.5 billion.\u201d He also emphasized, \u201cIn particular, it should be noted that although a decrease in profit was expected in Q2 due to the disappearance of an inventory valuation gain of KRW 372.2 billion thanks to the rise in oil prices that occurred in the first quarter, we see a higher chance of profit increase.\u201d<\/span><\/p>\n

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Analyst Hwang continued, \u201cThe effect from booming in lubricant \/petrochemical business and reduction of the loss in battery business will be remarkable in Q2.\u201d He expected, \u201cIn Q2, SK Innovation\u2019s oil refinery business will gain KRW 154.7 billion in operating profits, while the numbers of chemical and lubricant businesses will be KRW 194.1 billion and 249.1 billion, respectively.\u201d<\/span><\/p>\n

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Considering two encouraging factors in oil refinery industry for the second half of this year, Hwang prospected that \u201cSK Innovation may hit KRW 45.2 trillion in sales and KRW 2.2 trillion in operating profits this year.\u201d<\/span><\/p>\n

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Hwang pointed out the reason for his prospect is \u201cthe improvement of global demand-supply status.\u201d \u201cThe effect of COVID-19 vaccination will recover the demand for crude oil in the end of this year, which will be improved by 4% compared to the first half of 2021 to 100 million barrels, while the refineries around the world will be closed by 1.25 million barrels per day.\u201d<\/span><\/p>\n

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Also, he predicted \u201cIran is highly likely to resume oil exportation.\u201d and explained the amount to be \u201cincrease of 2% for global demand.\u201d \u201cThis will increase the volume equivalent to 2% of global demand, which will lower the price premium of Middle Eastern crude oil.\u201d He analyzed, \u201cAs a result, the cost of importing Middle Eastern crude oil can be lowered by 2 US dollars per barrel (equivalent to KRW 450 billion per year).\u201d <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

  Yuanta Securities is expecting that SK Innovation will achieve profit increase in the second quarter of this year, after a hard year due to COVID-19 pandemic and fallen oil price.   In a report released on June 29th, analyst Kyu-won Hwang of Yuanta Securities Korea said \u201cSK Innovation is expected to have earned KRW … Read more<\/a><\/p>\n","protected":false},"author":564,"featured_media":6144,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3,347],"tags":[],"class_list":["post-6140","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insight","category-trend_report"],"acf":[],"_links":{"self":[{"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/posts\/6140","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/users\/564"}],"replies":[{"embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/comments?post=6140"}],"version-history":[{"count":5,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/posts\/6140\/revisions"}],"predecessor-version":[{"id":6149,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/posts\/6140\/revisions\/6149"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/media\/6144"}],"wp:attachment":[{"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/media?parent=6140"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/categories?post=6140"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/tags?post=6140"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}