[Special Stock] SK Gas Rises on Expectations of Profitability from New Power Plant

Hits New 52-Week High During Trading Session

SK Gas is showing strong performance in the early trading session. Following last year's fourth-quarter earnings that exceeded market expectations, the profitability outlook of the new power plant that began operations at the end of last year is interpreted to have a positive impact on the stock price.

As of 9:06 a.m. on the 5th, SK Gas was trading at 235,500 KRW, up 24,000 KRW (11.35%) from the previous day, marking a rebound after four trading days. During the session, it even reached 239,500 KRW, up 13%, setting a new 52-week high.

SK Gas's strong performance in the fourth quarter of last year and the anticipation of Ulsan GPS operations are seen as factors improving investor sentiment. Previously, SK Gas achieved an operating profit of 122.9 billion KRW in the fourth quarter, successfully returning to profitability. This exceeded market expectations (56.2 billion KRW) by approximately 121%. Thanks to the winter peak season and the recovery in the number of liquefied petroleum gas (LPG) vehicle registrations, LPG sales also rose about 10% from the previous quarter, reaching 2.03 million tons.

Jeon Woo-je, a researcher at KB Securities, explained, "The long-awaited Ulsan GPS also began commercial operations in the fourth quarter, achieving an operating profit of 28 billion KRW," adding, "It is estimated to be operating at over 50% capacity currently, with full operation expected by 2025." Jeon further stated, "Due to the sharp rise in liquefied natural gas (LNG) prices, LPG substitution sales are expected to increase," raising the target stock price from 230,000 KRW to 270,000 KRW. The investment opinion was maintained as 'Buy.'

Attention is also focused on additional growth drivers arising from overseas businesses. Yoo Jae-sun, a researcher at Hana Securities, said, "Following Ulsan GPS, the North American Energy Storage System (ESS) project began commercial operations in January with a scale of 100 MW/25 MWh, and a follow-up 100 MW project is underway aiming to start construction within the year," evaluating that "due to sufficient scalability, it is expected to be an additional profit growth driver after Ulsan GPS."