[Click eStock] "KCC, After Spandex Comes 'Silicone'"

Electric Vehicles, Renewable Energy to Cosmetics: Applications Across Various Fields

[Asia Economy Reporter Minwoo Lee] Following Spandex, silicone has been identified as KCC's next growth driver. It is analyzed to have greater growth potential than spandex as it can be utilized in various fields such as electronics, construction, automotive, renewable energy, and cosmetics.

On the 6th, Hana Financial Investment newly issued a 'Buy' rating and a target price of 500,000 KRW for KCC based on this background. The closing price on the previous trading day was 385,000 KRW.

Hana Financial Investment expects KCC to achieve significant growth through silicone following spandex. Both silicone and spandex have become pillars of the high value-added materials industry, forming a stable oligopoly structure after restructuring post-recession. Based on technological capabilities, they are expanding their applications and continuing steep growth compared to other materials.

Among these, silicone is judged to have a competitive advantage over spandex. First, it boasts high technological capability and patent barriers. Silicone patents number 370,000, which is 45 times that of spandex. This means it is free from threats by Chinese companies in the mid to long term. In fact, among the top five global silicone market share companies, there are no Chinese firms.

Yoon Jaesung, a researcher at Hana Financial Investment, explained, "Chinese companies can produce siloxane but lack the technological capability to manufacture high value-added materials," adding, "Considering the top five industry-leading companies' focused investment in silicone and the US investment restrictions on Chinese capital, it is virtually impossible for China to acquire technology through mergers and acquisitions."

Additionally, silicone has more diverse applications than spandex. It is used in various fields such as electronics, construction, automotive, renewable energy, and cosmetics. Researcher Yoon analyzed, "Recently, silicone is replacing existing materials and its penetration rate is increasing," and "It is especially gaining importance as a core material in electric vehicles and renewable energy businesses where thermal management is critical."

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