S-Oil Jumps 21% in Week as Target Price Raised to 200,000 Won on Q2 Earnings Surprise

According to Korean securities firms, S-Oil shares surged 21% during the week of July 2-9 (from 109,600 to 133,500 won), buoyed by expectations for a second-quarter earnings surprise. Hana Securities on July 7 raised its target price significantly from 130,000 to 200,000 won, projecting Q2 operating profit of 1.02 trillion won against market expectations of 900 billion won. Other brokerages including Korea Investment & Securities, Samsung Securities, and BNK Investment & Securities also raised price targets to 160,000, 150,000, and 160,000 won, respectively.

Analysts credit the rally to the lubricant division offsetting refining losses from lower crude prices. The lubricant segment is expected to post record operating profit of over 1.5 trillion won this year, driven by supply disruptions at Shell's Qatar plant following March damage to gas liquefaction facilities. Hana Securities forecasts dividends of 4,200 won and 9,000 won for 2026 and 2027, implying dividend yields of 3.6% and 7.7%.