KCC's stock has risen over 11% due to expectations of improved earnings and a reassessment of its corporate value.
According to the Korea Exchange, as of 1:56 PM on June 25, KCC shares were trading at 534,000 won, up 55,000 won (11.48%) from the previous trading day. The stock opened at 502,000 won and reached a high of 555,000 won during the session, demonstrating strong performance. Although some gains were later surrendered, the stock maintained a double-digit increase.
The surge in stock price is attributed to improved investor sentiment, as analysts positively evaluated the potential for earnings improvement and a reassessment of asset values.
Shinhan Investment Corp. stated that KCC's current stock price does not fully reflect the recovery of its core business and the value of its assets, setting a target price of 750,000 won and recommending a 'buy' rating.
Lee Jin-myung, a researcher at Shinhan Investment, noted in a report, "The silicone business has entered a phase of profitability improvement after passing its low point. The coatings business continues to generate solid profits based on a high-value portfolio, and with the rise in the value of investment assets and share buybacks, a reassessment of corporate value is expected to gain momentum."
He added, "The increase in the value of investment assets, including Samsung C&T, share buybacks, and rising foreign ownership are all positive factors. The value of investment assets (8.6 trillion won) significantly exceeds the market capitalization (4.1 trillion won), and the strengthening of shareholder return policies is expected to change market evaluation criteria."
* This article has been translated by AI.
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