Hanwha Solutions Rises for 4 Consecutive Trading Days
OCI Up 40% from Last Month's Low
[Asia Economy Reporter Kwon Jae-hee] As concerns over energy security have intensified due to the Ukraine crisis, solar power, an eco-friendly energy source, has gained a windfall benefit. In particular, the European Union (EU), which has relied heavily on Russia for most of its energy sources, has announced plans to cut its dependence on Russian fossil fuels by 2027 and is driving the transition to solar power. In response, proactive investors are turning their attention to solar-related stocks.
According to the Korea Exchange on the 31st, Hanwha Solutions was trading at 38,500 KRW as of 9:09 a.m., up 4.62% from the previous trading day. Hanwha Solutions has risen for four consecutive trading days, reaching as high as 39,450 KRW during the session. This marks an approximately 31% increase from the low of 30,000 KRW on the 28th of last month. OCI is also on a continuous upward trend. At the same time, OCI recorded 132,500 KRW, up 3.11% from the previous trading day. OCI has also risen for five consecutive trading days, increasing nearly 40% from the low of 94,500 KRW on the 28th of last month.
The reason solar stocks, which had struggled for a long time, are collectively rising is thanks to the solar power tailwind from Europe. Europe’s dependence on Russian natural gas stands at 41%, but with ongoing sanctions against Russia due to the Ukraine crisis, it has begun diversifying its energy sources. To this end, the EU announced it will invest 210 billion euros in renewable energy transition by 2027 to cut dependence on Russian fossil fuels. Among renewable energies, the EU is particularly accelerating the transition to eco-friendly energy sources centered on solar power, aiming to more than double solar power generation capacity by 2025.
Positive developments from the United States have also driven the rise in solar stocks. On May 21, during President Joe Biden’s visit to Korea, the U.S. Department of Commerce invited solar companies such as Hanwha Solutions and OCI to a business roundtable, strengthening the "Korea-U.S. Solar Alliance."
Accordingly, domestically listed solar ETFs have also recorded gains of over 20% in the past month. The 'SOL China Solar CSI' ETF has risen about 27% since April 27 and has increased more than 10% just this month.
Lee Jin-ho, a researcher at Mirae Asset Securities, said, "Especially in Europe, where dependence on Russian energy is high, the de-Russia policy could accelerate the growth rate of the solar market. Considering the necessity to address climate change issues and the acceleration of the transition to renewable energy, the growth rate of solar power is expected to speed up further."
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