S. Korea Energy & Materials | Asia Pacific: 2Q26 Preview: Fading Tailwinds

Research evidence excerpt

S. Korea Energy & Materials | Asia Pacific: 2Q26 Preview: Fading Tailwinds

IdeaPreviewMto earnings

Focus KPI Focus KPI Surprise Likely impact to consensus EPS*

Samsung SDI 006400.KS

Battery margin + ESS volume growth In-line Largely unchanged

• We forecast consolidated operating loss of W42bn (remaining -ve both QoQ and YoY), broadly in-line with the

consensus OP estimate of -W59bn

• We expect moderate QoQ rev growth with a narrowing of operating losses on solid BBU/UPS demand

offsetting softer ESS rev growth.

• Any US tariff refunds could provide room for mild upside risks to consensus and our estimates.

LG Chem 051910.KS

Petchem margin + cathode volume

Likely downside surprise Modest revision lower

growth

• We forecast consolidated OP of W294bn (turning +ve QoQ, but -38% YoY), below the Bloomberg consensus

estimate of W446bn.

• While we expect its petchem business to benefit from solid spreads and lower feedstock costs, the cathode

business is likely to remain loss-making given low utilization.

• Moreover, LGES' 2Q26 OP miss is likely to pose a downside risk to LGC's earnings.

SK Innovation Co Ltd 096770.KS

Refining margin + battery margin Likely downside surprise Modest revision lower

• We forecast consolidated OP of W1.48trn (-31% QoQ, turning +ve YoY), below the Bloomberg consensus

estimate of W1.78trn.

• We expect modest inventory gains and resilient refining margins, partly offset by CDU maintenance during the

quarter and the impact of domestic pricing caps.

• While other business segments are likely to perform broadly in line with expectations, we expect the

lubricants business to deliver strong earnings, supported by widening spreads.

• Any one-off reimbursement related to the Ford JV termination warrants monitoring.

S-Oil 010950.KS