Shinhan Investment has raised its investment opinion on Korea Gas Corp. to 'buy' and raised its target stock price to 40,000 won.
Shinhan Financial Investment said, "The performance of Korea Gas Corporation consists of the domestic gas business (regulation) guaranteed by the government and the overseas resource development project (non-regulation) linked to oil prices.".
"Regulatory projects can be considered to be linked to interest rates at a time when the range of changes in the rate base has been reduced," Shinhan Investment said. "Non-regulated projects are highly dependent on oil prices, and overall gains and losses are determined by the level of international oil prices.".
"The rise in oil prices has secured visibility into earnings and dividends," Shinhan Financial Investment said. "We will raise our DPS forecast to 1,290 won this year.". "The seasonality of quarterly gains and losses has decreased due to adjustment of supply costs for power generation, and we expect a turnaround in overseas E&P businesses due to rising oil prices," Shinhan Investment said.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
