[Click eStock] "OCI, Performance Improvement Not Properly Reflected in Stock Price"

[Asia Economy Reporter Ji Yeon-jin] Daishin Securities stated on the 1st that OCI, a manufacturer of polysilicon, a key material for semiconductor wafers, is not properly reflected in the stock price despite already increased earnings due to excessive concerns about the weakening of polysilicon, maintaining a buy investment opinion and a target price of 200,000 KRW.

OCI's operating profit for the second quarter of this year is estimated to reach 137 billion KRW, a 191% increase compared to the previous quarter. This exceeds the market forecast of 104.3 billion KRW by 30%. The operating profit of the core Basic Chemicals division is expected to surge 231% quarter-on-quarter to 105 billion KRW.

The third quarter operating profit is expected to be 192.9 billion KRW, a 41% increase year-on-year, as the average selling price (ASP) of polysilicon continues to rise. Assuming stabilization of polysilicon prices in the future, next year's operating profit is expected to increase by 28% year-on-year to 661.9 billion KRW.

Han Sang-won, a researcher at Daishin Securities, said, "The reason for maintaining the target price despite significantly raising earnings estimates is that a more conservative valuation was applied compared to before," adding, "Despite the conservative valuation method, the stock price has an upside potential of +70%, so the current stock price level corresponds to an absolute undervaluation."