S-Oil Corp Golden age of refining. Raise EPS/PT and upgrade to OW

Research evidence excerpt

S-Oil Corp Golden age of refining. Raise EPS/PT and upgrade to OW

J P M O R G A N Asia Pacific Equity Research

12 May 2026

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S-Oil Corp ▲Overweight

Previous: Underweight

Golden age of refining; raise EPS/PT and upgrade to 010950.KS, 010950 KS

Price (11 May 26):W110,700

OW ▲Price Target (Jun-27):W135,000

Prior (Dec-26):W71,000

S-Oil reported a strong 1Q26 OP of W1231bn, beating BBG consensus of Head of Asia Energy & Chemicals |

W745bn, albeit slightly missing JPMe of W1.4trn due to lower than expected 1Q26 Asia EV Battery

inventory gains. Post results, we raise our 2026-2030 refining margin forecasts to Parsley Ong AC

$10-25/bbl (previous: $7.5-8.5/bbl, Table 1JPMAsiaGRM($/bl)) to reflect 2.5mbd effective capacity (65) 6882-8578

outages from Russia/ME/RoW. In tandem, we raise FY26/27 EPS forecasts for parsley.rh.ong@jpmorgan.com

S-Oil by ~75%/10% and upgrade the stock to OW. Majority of the recent investor J.P.J.P. MorganMorgan SecuritiesSecurities Singapore(Asia Pacific)PrivateLimited/Limited/J.P.

concerns have centered on domestic refining losses given the Korean Morgan Broking (Hong Kong) Limited

government’s price cap mechanism and uncertainty on the timing and calculation Michelle Wong

method of compensation. However, we view the compensation as more of a (852) 2800 8556

delayed impact and see upside risk to FY26/27 consensus given our raised GRM michelle.wong@jpmorgan.com

J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

estimates. Morgan Broking (Hong Kong) Limited