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[Alpha Biz= Reporter Kim Minyoung] On the 6th, Hana Securities forecasted that KCC's operating profit would reach an all-time high this year due to strong performance in the silicon business.
The firm maintained its 'Buy' rating with a target price of 380,000 KRW. The previous day's closing price was 278,000 KRW.
Hana Securities projected KCC's operating profit this year to be a record 523.4 billion KRW, a 67.4% increase compared to last year’s 312.5 billion KRW.
In particular, the silicon business segment is expected to see significant improvement.
Hana Securities stated, 'The cost reduction effect is estimated to be maximized due to the recent weakening of raw material metasilicon caused by adjustments in polysilicon operating rates. The continued weakness in metasilicon suggests that the operating profit in the silicon segment will further improve in the third quarter.'
KCC's silicon segment operating profit for the second quarter is estimated at 16.3 billion KRW, a significant improvement from 2.7 billion KRW in the first quarter. This improvement is attributed to the increase in prices for generic silicon products and margin improvements in high-value silicon used in consumer goods and transportation.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
