[Market Focus] OCI Holdings Surges Over 9% on OBBBA Benefit Expectations

OCI Holdings, which recorded an operating loss in the second quarter of this year, is surging on expectations of benefiting from the passage of the US OBBBA (One Big Beautiful Bill Act).

As of 9:42 a.m. on July 25, OCI Holdings was trading at 98,000 won, up 8,800 won (9.87%) from the previous day.

In the second quarter, OCI Holdings posted sales of 776.2 billion won, down 18.3% year-on-year, and recorded an operating loss of 77.7 billion won, significantly missing the market consensus. The sharp decline in sales volume was due to lower operating rates at factories in Southeast Asia.

However, on this day, Hyundai Motor Securities maintained its "Buy" rating on OCI Holdings, stating, "The passage of the OBBBA Act is expected to provide the greatest benefit. A rapid turnaround in performance is anticipated." The target price was raised from 105,000 won to 128,000 won.

Kang Dongjin, a researcher at Hyundai Motor Securities, said, "Following the passage of the OBBBA Act, from next year, solar projects will need to avoid sourcing materials from Prohibited Foreign Entities (PFE) in order to qualify for investment tax credits. As a result, orders for non-PFE polysilicon are surging, and from September, facility utilization is expected to reach 100%."

He added, "The restructuring of China's polysilicon industry is also becoming a reality, so overall favorable market conditions are expected to continue. The visibility of a performance turnaround is high, which will highlight the appeal of OCI Holdings' low valuation."

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