Mirae Asset Securities on Thursday raised its target price for OCI Holdings to 400,000 won from 270,000 won, citing expectations of a partnership with SpaceX and higher earnings estimates. It maintained a “buy” rating.
Analyst Lee Jin-ho said rising U.S. power demand is expected to lift the value of generation assets and power purchase agreement, or PPA, prices, supporting higher expected sale prices for OCI Energy assets while also reflecting improvement in the company’s core business. He said the company’s medium- to long-term growth outlook and valuation appeal are becoming more prominent.
Lee said the company’s polysilicon capacity expansion plan signals that cooperation with SpaceX is progressing smoothly, adding that its low production costs and ability to expand are strengths as non-China supply chains are needed.
He said whether the company can secure cooperation with key customers in the U.S. solar market will shape the stock’s direction, and that OCI Holdings is in a favorable position as it scales up its business.
Lee said results fell short of market expectations in the short term due to lower utilization at its polysilicon plant, but he expects earnings improvement to continue over the medium to long term on expansion and demand growth. He said the stock should remain his top pick in the sector.
* This article has been translated by AI.
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