"Operating Profit to Surge 4,238%" Hanwha Vision Target Price Raised to 120,000 Won... S-Oil Lifted to 150,000 Won on Strong Refining Margins [Stocktopia]

[Financial News] Here is a summary of key brokerage reports from the morning of March 6.
S-Oil is forecast to generate operating profit of around 3.2 trillion won this year, backed by exceptionally strong refining margins following the Middle East crisis. For Korea Electric Power Corporation (KEPCO), long-term earnings will largely depend on electricity tariff reforms and the direction of oil prices, so analysts are advising investors to stay on the sidelines for now. Hanwha Vision is expected to see its fourth-quarter operating profit jump 4,238% year-on-year, driven by full-scale orders for semiconductor stacking Thermo-Compression Bonders (TC bonders) from SK Hynix and the supply of Hybrid Copper Bonding (HCB) equipment.
◆S-Oil (010950)― Korea Investment & Securities / Analyst Lee Chung-jae
- Target price: 150,000 won (raised from 140,000 won) | Previous close: 134,700 won
- Investment opinion: Buy
Korea Investment & Securities projects S-Oil will post 37 trillion won in revenue and 3.2 trillion won in operating profit this year, and has raised its target price from 140,000 won to 150,000 won. Analyst Lee Chung-jae noted that refining margins turned exceptionally strong in March due to the fallout from the Middle East crisis. He added that if increased exports of refined products from China coincide with declining U.S. shale oil production, global refining demand could exceed the current forecast of 1 million barrels per day (bpd).※ Refining marginThis refers to the profit earned by refining crude oil into products such as gasoline and diesel. For example, if a refiner buys 1 barrel of crude oil for 10 dollars and sells the refined products for 15 dollars, the refining margin is 5 dollars. The higher the refining margin, the more profitable refining companies become.
◆Korea Electric Power Corporation (KEPCO) (015760)― Mirae Asset Securities / Analyst Ryu Jae-hyun
- Target price: 51,000 won (unchanged) | Previous close: 48,200 won
- Investment opinion: Neutral
Mirae Asset Securities pointed out that KEPCO has some positives, such as a slowdown in the decline of electricity sales volumes and increased nuclear power generation. However, it maintained a Neutral rating and a target price of 51,000 won, citing the burden of a policy environment in which further tariff hikes are difficult. Analyst Ryu Jae-hyun commented that if nuclear power exports to the United States materialize, the stock could retain its momentum, but since tariff reform and oil price trends will ultimately determine long-term earnings, investors should adopt a wait-and-see approach for the time being.
◆Hanwha Vision (148140)― Kiwoom Securities / Analyst Park Yoo-ak
- Target price: 120,000 won (raised from 90,000 won) | Previous close: 78,300 won
- Investment opinion: Buy
Kiwoom Securities named Hanwha Vision its top pick in the semiconductor sector and raised its target price from 90,000 won to 120,000 won. Analyst Park Yoo-ak expects full-scale TC bonder orders from SK Hynix in the first quarter to drive a sharp earnings increase from the second quarter, with fourth-quarter operating profit projected to surge 4,238% year-on-year to 41.1 billion won. Park also forecast that by supplying second-generation HCB equipment to High Bandwidth Memory (HBM), NAND, and foundry customers, Hanwha Vision’s consolidated operating profit will reach 491.7 billion won in 2027, up 111% from the previous year.※ TC bonderA Thermo-Compression Bonder is equipment that precisely bonds semiconductor chips using heat and pressure when stacking multiple chip layers. It is a core tool in processes that stack memory in several layers, such as HBM.※ HBMHigh Bandwidth Memory (HBM) is an ultra-high-speed memory semiconductor used in AI servers. It processes data several times faster than conventional DRAM and is mounted on Nvidia graphics processing units (GPUs), making it essential for running AI services such as ChatGPT.※ HCBHybrid Copper Bonding (HCB) is a next-generation semiconductor stacking technology that is a step beyond TC bonding. It enables ultra-precise connections of 10 micrometers (μm) or less and is expected to be essential for producing high-capacity HBM products with 16 or more layers.

sms@fnnews.com Seong Min-seo Reporter