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[Alpha Biz=(Chicago) Reporter Paul Lee] Daishin Securities raised its operating profit estimate on the 5th, saying S-Oil's operating profit in the first quarter of this year will be 508.6 billion won and the oil refining sector's operating profit will be 276.9 billion won. The investment opinion was to maintain the 'buy' target stock price of 90,000 won.
"The target price applied 1.1 times the target PBR (net asset ratio) to 79,710 won of the expected BPS (net asset value per share) in 2024," Daishin Securities said in an S-oil report titled 'Short-Term Trading Section'. "It is PBR 0.9 times lower than the 11.5% return on equity (ROE) in 2023."
Securities said, "Considering the OSP (official sales price of crude oil), the expected average oil price for the first quarter of 2024 is 81.9 dollars / barrel, similar to 81.3 dollars (OSP +4 dollars) in December 2023, so the possibility of additional large-scale inventory valuation losses is limited," adding, "We raised the first-quarter refining margin to 4.4 dollars / barrel due to soaring margins (more than 25 dollars / barrels) due to rising demand for kerosene and diesel oil."
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
