[Click e-Stock] Producing Core Materials and Components Related to Hydrogen... Kolon Stock↑

Samsung Securities Report

[Asia Economy Reporter Minji Lee] Samsung Securities analyzed on the 9th that the subsidiaries within Kolon Group are showing an upward trend in stock prices, reflecting expectations for the hydrogen industry. Furthermore, it is expected that this issue will help alleviate the bio risks related to Kolon TissueGene.

Kolon Group plans to showcase its hydrogen-related capabilities by participating in the Hydrogen Mobility+ Show until the 11th. Kolon Group has set a goal to achieve sales of 1 trillion KRW across the hydrogen industry by 2030, aiming to become a core materials and components group. Kolon Industries possesses products such as moisture control devices for hydrogen fuel cells, polymer electrolyte membranes (PEM), and membrane electrode assemblies (MEA). The moisture control device has entered mass production for the first time domestically, holding the world's number one market share.

Kolon Global is conducting a business that directly produces and supplies green hydrogen using water electrolysis technology based on hydrogen fuel cells. Kolon Glotech produces hydrogen pressure vessels using carbon fiber and epoxy, while Kolon Plastics supplies housing components that enhance the efficiency of hydrogen fuel cells.

Following the anticipation of the hydrogen business reflected yesterday, the stock prices of Kolon Plastics and Kolon Global rose by 23% and 14%, respectively. Researcher Ilwoo Yang of Samsung Securities stated, “Due to the stock price increases of the subsidiaries, Kolon's net asset value (NAV) increased by 8.5% in one day,” adding, “Kolon's NAV discount rate rose to 62.4%, the highest level since early 2019.”

Expectations for the hydrogen business are predicted to somewhat alleviate the bio risks that Kolon Group has not yet shaken off. Kolon Life Science, in which the holding company Kolon owns a 20.4% stake, holds shares in Kolon TissueGene, which has been suspended from trading since May 28, 2019, due to issues related to Inbosa. Researcher Yang explained, “The stock prices of Kolon TissueGene and Kolon Life Science showed a high correlation before the suspension of Kolon TissueGene's trading, but Kolon Life Science's stock price has not shown a significant downturn this February,” adding, “If the trading of Kolon TissueGene resumes in the future, it could also help increase Kolon Group's NAV.”