Business · Companies · 3 hrs ago
Hana Securities cuts S-Oil target price, cites project and dividend risks
Hana Securities cut its S-Oil target price from 220,000 won to 180,000 won and lowered its operating-profit estimate for next year by 18%.
The South Korean oil refiner’s shares recently closed at 170,000 won, a record high at the time, according to the report.
The revised estimates reflect a cautious view of refining margins and the Shaheen project’s returns.
Hana Securities still expects the refining industry to remain firm next year and says a structurally negative official selling price could reduce S-Oil’s costs.
It also points to expected dividend yields of 4.5% in 2026 and 6.7% in 2027.
Further record highs depend on stronger dividends and Shaheen profitability, the brokerage says.
Until those are clearer, it expects the shares to trade within a limited range, with neither much room to rise nor fall.
Hana Securities cut its target price for S-Oil from 220,000 won to 180,000 won.
The brokerage lowered its estimate of S-Oil’s operating profit for next year by 18%, citing cautious assumptions about refining margins and the profitability of the Shaheen project.
It expects S-Oil’s fourth-quarter operating profit to fall 9% from the previous quarter to 1.29 trillion won.
Hana Securities said lower cost pressure from structurally negative official selling prices and attractive dividend yields could support the company.
It said further record share-price highs would require a stronger commitment to dividends and evidence that the Shaheen project can be profitable.
- Who
- Hana Securities and S-Oil.
- What
- Hana Securities cut its target price for S-Oil from 220,000 won to 180,000 won and lowered its operating-profit estimate for next year by 18%.
- When
- The report was published on November 3, 2026.
- Where
- Not stated.
- Why
- Hana Securities used cautious assumptions for refining margins and the Shaheen project’s profitability.
This story does not have two clearly opposing sides.
S-Oil closed at 170,000 won, its highest closing price in 15 years.
Hana Securities published its report cutting S-Oil’s target price.
- Previous target price
- 220,000 won
- New target price
- 180,000 won
- Next-year operating-profit estimate
- Lowered by 18%
- Fourth-quarter operating-profit estimate
- 1.29 trillion won, down 9% quarter on quarter
- Forecast dividend yield
- 4.5% in 2026; 6.7% in 2027
1 source
What people are saying
Refining margins and profitability following the start of operations at the Shaheen project have been reflected from a conservative perspective.
To set another historical high, the company needs an aggressive commitment to raising its dividend payout ratio and to securing profitability for the Shaheen project.
Until these are confirmed, we judge that the stock is likely to enter a range-bound market in the short term, with both downside and upside limited.