[Featured Stocks] US Tax Credit Maintenance Expectations... Solar Power Related Stocks 'Strong'

Solar power stocks are showing strength on the morning of the 10th as expectations rise that the U.S. will maintain its investment tax credit policy related to solar energy.

Yonhap News

According to the Korea Exchange, as of 10:27 a.m. on the day, HD Hyundai Energy Solutions is trading at 26,800 KRW, up 15.73% (3,650 KRW) from the previous trading day. Hanwha Solutions is trading at 18,720 KRW, up 3.57% (630 KRW) from the previous close.

The strength in solar power stocks is interpreted as a result of expectations that the U.S. will maintain its solar support policies.

During the presidential campaign, then-candidate Trump stated in a debate with Kamala Harris, "Solar power is a great industry. We will not stop expanding it." If President Trump continues this stance, investment tax credits (ITC) for the solar industry are expected to be maintained.

The outlook for the solar industry is also positive. An Juwon, a researcher at DS Investment & Securities, said, "The solar industry, which had struggled due to high interest rates and oversupply in the Chinese solar sector, is expected to improve. For solar power, stabilizing inventory levels due to supply reduction is more important than demand growth. Considering the supply cuts and price increases by Chinese companies throughout 2024, as well as the U.S. imposing tariffs on Southeast Asian solar panel inventories, it is a time when sentiment is expected to improve again."