[Market Focus] SK Innovation Rallies on Strong Outlook for Q3 Earnings Improvement

SK Innovation is showing strong gains of over 6% on expectations of improved third-quarter results this year.

As of 9:25 a.m. on October 24, SK Innovation was trading at 132,400 won on the Korea Exchange, up 7,900 won (6.35%) from the previous day.

The outlook for improved performance appears to be driving the stock price higher. On this day, Yuanta Securities estimated that SK Innovation would post 19.7 trillion won in revenue and 440.7 billion won in operating profit for the third quarter. Hwang Kyuwon, a researcher at Yuanta Securities, explained, "Not only will the company turn to a profit from an operating loss of 417.6 billion won in the previous quarter, but it will also significantly exceed the consensus estimate of 225.5 billion won." He added, "Although battery losses are expected to widen, inventory losses in the refining business have been resolved due to rising oil prices." He further stated, "With the third-quarter results and measures to ease financial burdens, the stock price is likely to challenge the 150,000 won level."