Rongsheng Petrochemical, China’s largest petrochemical company, will begin a major expansion of petrochemical products at the beginning of the new year. The expansion portfolio includes intermediate raw materials and synthetic resins, which are the main products of Korean petrochemical companies.Ron
The author is an analyst for Shinhan Securities. He can be reached at jinmyung.lee93@shinhan.com -- Ed.2Q23 OP to fall short of consensus at KRW32.4bn (-94% QoQ)S-Oil is expected to post operating profit of KRW32.4bn (-94% QoQ) for 2Q23, missing the consensus estimate of KRW384.3bn. The refining div
The author is an analyst of Shinhan Securities. She can be reached at sunmi.kim@shinhan.com -- Ed.OP beats consensus by 30% for a second straight quarterSamsung Engineering posted consolidated sales of KRW2.5tr (+17.1% YoY, - 13.8% QoQ) and operating profit of KRW225.4bn (+29.2% YoY, +5.1% QoQ) for
The author is an analyst of NH Investment & Securities. He can be reached at yk.choi@nhqv.com -- Ed.The impacts of China’s economic reopening are unfolding slower than expected. But, with the direction of a gradual strengthening in demand remaining intact, we foresee a modest earnings recovery for L
LG Chem announced on April 13 that it has signed a joint research and development agreement with North American eco-friendly fuel company Gevo to commercialize bio-propylene by 2026.Gevo possesses the source technology necessary for production of sustainable aviation fuel (SAF) and bioplastics with
The author is an analyst of Shinhan Securities. He can be reached at jinmyung.lee93@shinhan.com -- Ed.1Q23 operating profit to fall short at KRW145bnSK Innovation is expected to have recorded operating profit of KRW145bn (positive swing QoQ) in 1Q23, missing the market consensus of KRW341.7bn. The r
Samsung Engineering has received a letter of award (LOA) from ADNOC, the UAE’s state-run oil company, regarding pre-construction services (PCS) for the Hail and Ghasha gas field project, according to the Financial Supervisory Services on Jan. 16.The gas field project aims to develop two natural gas
South Korean oil refining companies are expanding their business in the petrochemical industry. This is because oil refining is highly vulnerable to international oil price and refining margin fluctuations and environmental regulations are increasing worldwide.S-Oil decided to invest US$7 billion in
The authors are analysts of Shinhan Investment Corp. They can be reached at jinmyung.lee93@shinhan.com and cgh815@shinhan.com, respectively. -- Ed. 3Q22 OP to come in short of consensus at KRW605.8bn (-74% QoQ)We now expect SK Innovation to post operating profit of KRW605.8bn (-74% QoQ) for 3Q22, mi
LG Chem will showcase its next-generation sustainable materials technologies at K 2022, the world’s largest plastic and rubber exhibition that runs from Oct. 19-26 in Düsseldorf, Germany.On display will be next-generation materials under development including poly lactic acid (PLA), a thermoplastic
The authors are analysts of Shinhan Investment Corp. They can be reached at jinmyung.lee93@shinhan.com and cgh815@shinhan.com, respectively. -- Ed. 2Q22 OP beats consensus at KRW2.3tr (+41% QoQ)SK Innovation posted operating profit of KRW2.3tr (+41% QoQ) for 2Q22, beating the consensus estimate of K
The authors are analysts of Shinhan Investment Corp. They can be reached at jinmyung.lee93@shinhan.com and cgh815@shinhan.com, respectively. -- Ed. 2Q22 OP to exceed consensus at KRW1.55tr (+16% QoQ)S-Oil is expected to have delivered operating profit of KRW1.55tr (+16% QoQ) for 2Q22, beating the co
The author is an analyst of KB Securities. He can be reached at yc.baek@kbfg.com. -- Ed. 1Q22 earnings beat consensus by wide margin— SK innovation posted 1Q22 revenue of KRW16.26tn (+76.0% YoY, +18.5% QoQ) and OP of KRW1.65tn (+228.2% YoY, TTB QoQ), beating consensus (KRW1.00tn OP, Mar 21, FnGuide)
The author is an analyst of KB Securities. He can be reached at yc.baek@kbfg.com. -- Ed. Maintain BUY, trim target price 7.2% to KRW283,000 We maintain BUY on Lotte Chemical but trim our TP by 7.2% to KRW283,000, as adjustments to key product spreads (e.g., HDPE, PP, MEG) lowered 2022E NP (attributa
The authors are analysts of Shinhan Investment Corp. They can be reached at jinmyung.lee93@shinhan.com and cgh815@shinhan.com, respectively. -- Ed. 4Q21 OP misses consensus at KRW29.7bn (-90% QoQ)Lotte Chemical reported operating profit of KRW29.7bn (-90% QoQ) for 4Q21, falling far short of the KRW2
The author is an analyst of KB Securities. He can be reached at yc.baek@kbfg.com. -- Ed. Maintain BUY, lower target price 6.7% to KRW305,000 We maintain BUY on Lotte Chemical but lower our TP by 6.7% to KRW305,000. Our revised TP, which represents 2022E P/E of 8.6x, P/B of 0.69x, reflects:(1) an inc
The author is an analyst of KB Securities. He can be reached at yc.baek@kbfg.com. -- Ed. Cut target price to KRW327,000 We maintain BUY on Lotte Chemical but cut our TP by 13.9% to KRW327,000 to reflect downward revisions to 2022E/2023E NP (attributable to controlling interests) by 9.2%/4.3% given d
Hyundai Engineering has signed a contract with Indonesia’s state-run oil company PT Pertamina to provide a front end engineering design (FEED) for the TPPI Olefin Complex Project.Samsung Engineering also signed an FEED contract for the same project. Therefore, it will be inevitable for the two compa
Hyundai Engineering announced on Nov. 30 that it has won a super-large gas plant construction project worth about 2 trillion won from Saudi Arabia’s state-run oil company Aramco.On hand at the signing ceremony in Saudi Arabia were Kim Chang-hak, president of Hyundai Engineering, and Abdulkarim A. Al
The author is an analyst of KB Securities. He can be reached at yc.baek@kbfg.com. -- Ed. Cut target price to KRW380,000 We maintain BUY on Lotte Chemical but cut our TP by 15.6% to KRW380,000 to reflect our revised earnings forecast. 2022E NP (attributable to controlling interests) was lowered 10.9%