[Featured Stock] KCC Rises 5% on Profit Improvement Expectations Through Asset Securitization

KCC's stock price is on the rise. Expectations for profit improvement through asset securitization and interest rate reduction in the second half of the year appear to be influencing the stock price.

As of 9:23 AM on the 25th, KCC is trading at 293,500 KRW, up 5.96% from the previous day.

Jeong Kyung-hee, a researcher at Kiwoom Securities, stated, "Regarding the silicon division, which led the surprise earnings in the first quarter, we expect improved profits in the second quarter following the turnaround to profitability in the first quarter. This is because the industry, which was weak last year, is somewhat stabilizing, and during the first quarter, KCC completed the acquisition of the remaining 20% stake in Momentive, enabling faster decision-making and efficiency improvements between KCC and Momentive."

Researcher Jeong added, "With the depletion of deficit inventory that had negatively impacted silicon profitability and the completion of the remaining stake acquisition, full-scale synergy creation between KCC and Momentive will improve the profitability of the silicon division, regardless of the overall organic silicon industry conditions. Furthermore, if asset securitization proceeds in the second half, interest expenses could be reduced by about 100 billion KRW through an 8% level acquisition financing interest rate reduction, significantly improving the overall net profit."