Corporate Logo(source: skgas.co.kr)
Meritz Securities said on November 21 that it raised its target price for SK Gas(018670), expecting earnings stability to improve through the sale of power plant equity stakes and restructuring of affiliates.
In a report released the same day, analyst Moon Kyung-won said, “In the near term, we focus on the restructuring of subsidiaries and affiliates as a trigger for share price appreciation,” raising the target price by 14% to 320,000 won while maintaining a “Buy” rating.
As of 9:25 a.m., SK Gas was trading at 262,000 won, down 2.24% from the previous session.
Moon noted that “according to media reports, SK Gas is pushing to sell a minority stake in Ulsan GPS, a gas-fired combined-cycle power plant, within the near future,” adding that the facility has shown strong profitability recently and is not yet at a stage of aging equipment, which supports expectations for a high valuation.
Ulsan GPS is the world’s first gigawatt-scale LNG/LPG dual-fuel combined-cycle power plant built in Ulsan with an investment of 1.4 trillion won by SK Gas.
Moon added that the government-led restructuring in the petrochemical industry could also pave the way for restructuring at SK Advanced. “Such changes are expected to enhance the earnings stability of SK Gas,” he said.
Profitability is also improving. Moon noted that “SK Gas is expanding its trading portfolio from liquefied petroleum gas (LPG) to liquefied natural gas (LNG),” and that the shift broadens supply coverage and raises expectations for trading profit.
He also highlighted long-term opportunities in LNG bunkering, referencing the use of the dedicated bunkering pier at Korea Energy Terminal (KET).
Moon projected that SK Gas’ consolidated operating profit for this year would reach 548.4 billion won, up 91% from a year earlier, marking the highest annual earnings in the company’s history.
*[KOSPI]SK Gas(018670) engages primarily in the import, storage, and sale of liquefied petroleum gas(LPG), and is pursuing new businesses such as the world's first LNG/LPG dual power generation project(Ulsan GPS), LNG terminals(Korea Energy Terminal), and hydrogen projects. Market capitalization is 2.487 trillion won(as of February 19, 2025, closing price).
Corporate Logo(source: skgas.co.kr)
Meritz Securities said on November 21 that it raised its target price for SK Gas(018670), expecting earnings stability to improve through the sale of power plant equity stakes and restructuring of affiliates.
In a report released the same day, analyst Moon Kyung-won said, “In the near term, we focus on the restructuring of subsidiaries and affiliates as a trigger for share price appreciation,” raising the target price by 14% to 320,000 won while maintaining a “Buy” rating.
As of 9:25 a.m., SK Gas was trading at 262,000 won, down 2.24% from the previous session.
Moon noted that “according to media reports, SK Gas is pushing to sell a minority stake in Ulsan GPS, a gas-fired combined-cycle power plant, within the near future,” adding that the facility has shown strong profitability recently and is not yet at a stage of aging equipment, which supports expectations for a high valuation.
Ulsan GPS is the world’s first gigawatt-scale LNG/LPG dual-fuel combined-cycle power plant built in Ulsan with an investment of 1.4 trillion won by SK Gas.
Moon added that the government-led restructuring in the petrochemical industry could also pave the way for restructuring at SK Advanced. “Such changes are expected to enhance the earnings stability of SK Gas,” he said.
Profitability is also improving. Moon noted that “SK Gas is expanding its trading portfolio from liquefied petroleum gas (LPG) to liquefied natural gas (LNG),” and that the shift broadens supply coverage and raises expectations for trading profit.
He also highlighted long-term opportunities in LNG bunkering, referencing the use of the dedicated bunkering pier at Korea Energy Terminal (KET).
Moon projected that SK Gas’ consolidated operating profit for this year would reach 548.4 billion won, up 91% from a year earlier, marking the highest annual earnings in the company’s history.
*[KOSPI]SK Gas(018670) engages primarily in the import, storage, and sale of liquefied petroleum gas(LPG), and is pursuing new businesses such as the world's first LNG/LPG dual power generation project(Ulsan GPS), LNG terminals(Korea Energy Terminal), and hydrogen projects. Market capitalization is 2.487 trillion won(as of February 19, 2025, closing price).