[Market Focus] Heungkuk Oil Hits Upper Limit for Second Day... International Oil Prices Surge Amid Iran Conflict
Heungkuk Oil recorded an upper limit for two consecutive days as of March 4. Amid soaring oil prices due to geopolitical instability in the Middle East, Heungkuk Oil, which operates gas stations, appears to have been grouped under the "refining theme stocks."
On this day at the Korea Exchange, Heungkuk Oil closed at 29,700 won, up 29.98% from the previous session. The stock price hit the upper price limit as soon as the market opened. The previous day, it also hit the upper limit during trading before closing at 22,850 won.
Heungkuk Oil is a company that purchases petroleum products from GS Caltex and operates gas stations in the Daegu and North Gyeongsang Province region, employing 27 people. Unlike refining companies, which benefit directly from higher international oil prices through refining margins, gas station operators like Heungkuk Oil, which focus on wholesale and retail operations, tend to see their stock prices rise as "theme stocks."
Heungkuk Oil's provisional results for last year recorded sales of 107.9 billion won, down 7.7% from the previous year. The operating loss was 994.65 million won, a decrease of 251.8% during the same period.
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There are also concerns about excessive overvaluation. According to FnGuide, Heungkuk Oil's price-to-earnings ratio (PER) has been calculated at 552.47 times, meaning the stock price is about 552 times higher than earnings per share (EPS). This is more than twice as high as the industry PER of 234.88.
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