[E-Daily Reporter Park Sun-Yeop ] SK Innovation is trading higher on expectations that it will post second-quarter earnings that exceed market expectations, as well as on upward revisions to its target price by securities firms.
According to MP Doctor on the 16th, as of 9:21 a.m. today, SK Innovation(096770)is trading at 122,700 won, up 5,700 won (4.87%) from the previous trading day.

Earlier today, Hana Securities projected SK Innovation’s second-quarter operating profit at 1.8091 trillion won. This marks a turnaround from the loss recorded in the same period last year and exceeds the market consensus of 1.4936 trillion won by 21%. The firm analyzed that despite profit declines in the petroleum, chemicals, and SK E&S segments, significantly improved profitability in the high-grade lubricant base oil business will help underpin earnings.
In particular, the lubricant base oil division’s second-quarter operating profit is estimated at 950.9 billion won, with an operating margin of 40.7%. The outlook suggests that high profitability will be sustained for the time being as global supply disruptions for high-grade lubricant base oils persist. SK On, the battery subsidiary, is also expected to see its operating loss narrow compared to the previous quarter due to increased sales volume and higher U.S. production tax credits.
Daol Investment & Securities raised its full-year operating profit estimate for this year by 62.3%, from 4.0207 trillion won to 6.5248 trillion won. This represents a record high, more than 15 times higher than the previous year. The firm maintained its “Buy” investment rating and raised its target price from 170,000 won to 200,000 won.
Yoon Jae-sung, an analyst at Hana Securities, said, “Amid strong refining margins and a continuing boom in lubricant base oils, the company’s valuation remains undervalued compared to its competitors,” adding, “Considering the absolute strength of its earnings and its relative valuation, now is the time to buy.”