[Special Stock] HD Hyundai Energy Solutions Rises Amid US-China Trade Conflict and Solar Panel Sanctions

US Announces Solar Panel Import Sanctions on China
China Leads Global Market Share with Low-Cost Strategy
Korean Companies Struggling, Expecting Spillover Benefits

HD Hyundai Energy Solutions hit the upper price limit. Additionally, solar-related stocks are showing a strong rally together. This is interpreted as a reflection of the benefits gained from the US-China trade conflict.

As of 9:27 AM on the 23rd, HD Hyundai Energy Solutions is trading at 31,650 KRW, up 29.98% (7,300 KRW) compared to the previous day. It has also surpassed the 52-week high of 31,200 KRW recorded in December 2023. Other solar-related stocks such as Daemyung Energy (21.97%), Hanwha Solutions (14.93%), S-Energy (13.32%), UniTest (13.88%), and SDN (10.10%) are also showing double-digit gains.

Recently, solar stock prices have been strong due to the US-China trade conflict. The US government has decided to raise tariffs on Chinese solar cells from 25% to 50%, and to reimpose tariffs on bifacial solar panels to curb China's solar industry. These tariff hikes apply not only to solar products but also to a wide range of Chinese imports including electric vehicles, semiconductors, and medical supplies. According to Reuters, the US Trade Representative (USTR) announced on the 22nd (local time) that these sanctions will take effect from August 1.

China dominates the global solar market with a low-cost supply offensive. As of 2022, China accounts for 88.2% of global polysilicon production capacity, 97.2% of wafers, 85.9% of cells (solar cells), and 78.7% of modules. Korean solar companies, which once thrived but struggled against China, are expected to gain reflected benefits. Jin-ho Lee, a researcher at Mirae Asset Securities, said, “There is an expectation of a rebound in US module prices and potential valuation expansion,” adding, “The US is strengthening its measures to curb China’s solar industry.”