[Click eStock] "OCI Begins to Change Structural Growth Strategy"

Polysilicon Prices Rebound Again at the End of Last Month Contrary to Concerns
Daishin Securities "OCI Target Price Raised from 200,000 KRW to 215,000 KRW"

[Asia Economy Reporter Gong Byung-sun] The prices of polysilicon for solar power generation and semiconductors have rebounded, leading to an upward revision of OCI's earnings estimates for next year. News of entering the secondary battery anode material business through the joint venture P&OK Chemical with POSCO Chemical is also expected to boost the stock price.

On the 27th, Daishin Securities maintained its 'Buy' rating on OCI and raised the target price from 200,000 KRW to 215,000 KRW. The previous closing price was 120,000 KRW. The reason for raising the target price is due to changes in Daishin Securities' earnings estimates. Daishin Securities revised OCI's sales estimate for next year from 4.014 trillion KRW to 4.143 trillion KRW. The operating profit estimate for next year was also changed from 953 billion KRW to 962 billion KRW.

(Provided by Daishin Securities)

The rebound in polysilicon prices is interpreted as having influenced the earnings estimates. Contrary to concerns, polysilicon prices rebounded again at the end of last month. Considering the steady demand due to large-scale wafer expansion, polysilicon prices are expected to remain at a high level for the time being. Accordingly, the third-quarter operating profit of the Beige Chemical division, which produces polysilicon, is estimated to reach 136 billion KRW, a 72.7% increase compared to the same period last year.

The news of entering the secondary battery anode material business also appears to have had a positive impact. On the 26th, OCI announced that through the joint venture P&OK Chemical with POSCO Chemical, it will produce 15,000 tons annually of high-softening-point pitch for anode coating materials for secondary batteries. Considering mid- to long-term expansion plans, there is also the possibility of additional expansion of high-softening-point pitch production.

Han Sang-won, a researcher at Daishin Securities, said, "Among graphite-based anode materials, more synthetic graphite is used, so with the expected increase in the proportion of synthetic graphite compared to natural graphite, demand growth for this product is anticipated." He added, "Since new items have been added to the existing hydrogen peroxide, the joint venture's sales for 2023-2024 are expected to reach about 30 to 40 billion KRW."

This content was produced with the assistance of AI translation services.