[Asia Economy Reporter Oh Ju-yeon] With the inauguration of the next U.S. administration under Joe Biden on the 20th, market participants are focusing on the eco-friendly energy policies that will be promoted after Biden's inauguration. Last year, Biden announced as a campaign pledge that he would invest about $2 trillion over four years in clean energy-related infrastructure, which led to a rally in related stocks. Analysts suggest that if the policies are concretized this year, the market could stir once again.
According to the financial investment industry on the 4th, among renewable energy companies, Hanwha Solutions and OCI are representative companies in the solar cell and module sector, while CS Wind, Dongkuk S&C, and Taewoong, which have global competitiveness in towers and forged products, are mentioned as wind power-related stocks. These companies have already seen their stock prices rise significantly since the third quarter of last year, buoyed by expectations of Biden's election and domestic 'Green New Deal' policies.
Hanwha Solutions' stock price, which had fallen below 10,000 won to 9,370 won on March 20 last year, surged 423.48% to close at 49,050 won on September 7. Similarly, CS Wind's stock price, which was 15,412 won intraday on March 19, rose sharply to around 114,000 won during the September rally, marking a 639.68% increase.
The securities industry places weight on the possibility that these sectors could jump again. Although Hanwha Solutions' stock price rose to 54,000 won intraday on November 10 but has since fallen to 47,900 won, Hyundai Motor Securities and NH Investment & Securities have raised their target prices to 65,000 won. OCI, currently priced at 93,000 won, has already increased by 251.61% since March 19, but with an additional upside potential of up to 16%, a target price of 110,000 won has been suggested.
Steel and shipbuilding stocks are also stepping into the beneficiaries of renewable energy. POSCO and Hyundai Steel are notable for using hydrogen instead of coal in steel production through hydrogen reduction steelmaking processes. Samsung Heavy Industries, Daewoo Shipbuilding & Marine Engineering, and Hyundai Mipo Dockyard are gaining attention for their liquefied hydrogen and ammonia carriers. Additionally, Hyundai Motor is recognized as a leading company that will open the era of hydrogen vehicles, while Hyundai Electric and Hyosung Heavy Industries are considered key players in power transmission and distribution equipment.
However, rather than blindly jumping into 'Green New Deal' related stocks, advice is emerging that it is necessary to distinguish between the 'wheat and chaff' by selecting companies with mid- to long-term growth drivers.
Kim Yong-gu, a researcher at Samsung Securities, said, "Investment strategies should be based on global competitiveness and business feasibility rather than vague expectations," adding, "It is necessary to respond in a concentrated manner to solar cells producing renewable energy, floating offshore wind power and related casting and forging products, secondary batteries and hydrogen value chains responsible for renewable energy storage and transportation, and power transmission and distribution infrastructure stocks."
Jung Yeon-seung, a researcher at NH Investment & Securities, said, "There are concerns about whether renewable energy-related stocks have additional upside potential, but as detailed policies are being concretized and new projects are expected to increase through full-scale capital investment, there are no clear factors that would cause stock prices to fall," adding, "A strategy of mid- to long-term holding centered on companies with high export ratios or those that can concretize mid- to long-term external growth plans is effective."
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