SK Eternix Surges 26% to Record High Amid Oil Supply Fears

SK Eternix (475150) shares surged to a record high during trading as expectations grow for expanded renewable energy demand. The rally reflects a rapid shift of investment capital toward alternative energy sources such as solar and wind power, as tensions between the United States and Iran have heightened concerns over energy supply chain stability.

According to the Korea Exchange, SK Eternix was trading at 53,700 won as of 2:54 p.m. on the 19th, up 11,100 won (26.06%) from the previous trading day. The stock opened at 43,500 won in early trading and extended gains to refresh its record high, reaching as high as 54,700 won during the session.

SK Eternix, a renewable energy company under the SK Group, has established competitive positions in wind and solar power as well as energy storage systems (ESS). Analysts attribute the share price rally to expectations of improved earnings, driven by growing concerns over oil supply disruptions due to geopolitical risks combined with the government's renewable energy expansion policies. The gains stand in stark contrast to the KOSPI, which fell more than 2% during the same period.

On the 18th (local time), Israel struck Iran's largest gas field, and Iran retaliated against energy facilities in neighboring countries, sending international oil prices sharply higher. Brent crude May futures rose 3.8% from the previous session to $107.38 per barrel and surged as high as $109.95 during trading.

Markets are focusing on the potential for renewable energy companies to benefit structurally as energy security gains prominence. SK Eternix's scarcity value is expected to be highlighted given the limited number of domestic companies operating large-scale solar and wind businesses, according to analysts.

"Renewable energy is establishing itself as a primary power source beyond supplementary power," said Cho Hye-bin, a researcher at Kyobo Securities. "SK Eternix is a comprehensive energy company generating revenue across solar, wind, fuel cells, and ESS." She named SK Eternix as the top pick in the sector with a target price of 50,000 won.

DS Investment & Securities also raised its target price to 43,000 won in a recent report. The firm forecasts revenue and operating profit to increase 38.8% and 28.3% respectively this year, and expects revisions to the government's Renewable Portfolio Standard (RPS) to benefit the company.