[Click eStock] "KCC Glass, Positive Outlook on Increasing Demand for Window Materials at Construction Sites"

Korea Investment & Securities Report

[Asia Economy Reporter Minji Lee] Korea Investment & Securities maintained its buy rating and target price of 92,000 KRW for KCC Glass on the 17th. This is based on the judgment that the 54% market share in the domestic architectural flat glass market will positively reflect the increased demand for window materials.

This is because sales of architectural flat glass are showing an upward trend due to the full-scale input of intermediate materials at new apartment construction sites and remodeling demand from owner-occupied households. Additionally, limited facilities, increasing demand, and rising import prices from top importing countries are factors that raise expectations for KCC Glass to increase domestic sales prices of flat glass.

In fact, the demand for construction materials by process at domestic new apartment construction sites is increasing. This can also be confirmed by the case in the United States, where a survey conducted by the National Association of Home Builders in May found that 94% of respondents complained about a shortage of framing lumber. Considering the survey was conducted during a period of a sharp increase in new housing starts, it is estimated that procuring framing materials at the early stages of construction sites was the most difficult. Considering the construction period of detached wooden houses, now is the time when sites are increasing the input of intermediate materials.

Researcher Kyungtae Kang of Korea Investment & Securities explained, “The representative intermediate material is window frames, and aside from PVC and aluminum, the most important window material is glass,” adding, “The shortage of flat glass supply for window production is occurring not only in the U.S. but also domestically.”

It is also positive that the sales price of automotive safety glass is rising due to the increased production ratio of luxury car models by automakers. This is because the installation area of high-performance glass such as general laminated glass, HUD, and soundproof glass in luxury models can expand. Lastly, Researcher Kang analyzed, “A share swap between the largest shareholders of the group companies is expected to complete the separation of affiliates,” and noted, “It is worth paying attention to the increase in the value of common stock shares of KCC Glass held by Chairman Chung Mong-jin of KCC.”

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