[Click eStock] "SK Gas Successfully Defends Q2 Earnings"

[Asia Economy Reporter Park Ji-hwan] Heungkuk Securities on the 5th presented a 'Buy' investment opinion and a target price of 110,000 KRW for SK Gas, stating that despite the difficult business conditions due to COVID-19 and other factors, the company recorded performance that restored trust.

Jeon Woo-je, a researcher at Heungkuk Securities, said, "SK Gas's pre-tax profit for the second quarter was 116.1 billion KRW, and the cumulative pre-tax profit for the first half of the year was 252 billion KRW," adding, "The first half alone already exceeded last year's annual pre-tax profit of 90.5 billion KRW by 178%."

The pre-tax profit scale for 2021-2022 is expected to be around 170 billion KRW due to the new operation of Goseong Green Power and increased demand from the petrochemical industry.

There is also a possibility of inclusion in the hydrogen value chain. Starting in July, SK Gas began operating LPG-hydrogen combined charging stations, beginning in Incheon.

Researcher Jeon explained, "The subsidiary SK A (PDH) is already producing 30,000 tons of hydrogen annually using LPG as raw material," and "SK D&D is also promoting a hydrogen fuel cell power generation business."