[Special Stock] HD Hyundai Energy Solution Surges on Solar Policy Expectations

As of 9:50 a.m. on May 30, the share price of HD Hyundai Energy Solution, a company engaged in the production and sale of solar cells and modules, was up 11.55% from the previous day's closing price, reaching 45,400 won on the KOSPI market. This surge appears to be driven by heightened expectations for increased domestic solar installations after Democratic Party presidential candidate Lee Jaemyung announced the previous day his intention to establish a Ministry of Climate and Energy. Compared to Daemyung Energy and SK EterNix, which are engaged in wind and solar development and saw their shares rise by 5.52% and 4.47% respectively at the same time, HD Hyundai Energy Solution's increase was even greater.

HD Hyundai Energy Solution began in 2004 as the Green Energy Division of Hyundai Heavy Industries (now HD Hyundai Heavy Industries) and became an independent corporation in 2016. In the first quarter of this year, its sales amounted to 85.3 billion won, down 12.6% from the same period last year, and it posted an operating loss of 3 billion won. The proportion of domestic market sales is relatively high at 70?80%, compared to overseas. Due to uncertainties surrounding tariffs imposed by the Trump administration in the United States, attention has increasingly focused on HD Hyundai Energy Solution, which is more concentrated in the domestic solar market.

The previous day, Democratic Party presidential candidate Lee Jaemyung stated on social media, "We will establish a Ministry of Climate and Energy to lead the response to the climate crisis," and pointed out, "Our country has been slow to transition to renewable energy, resulting in weakened industrial competitiveness." With major domestic companies already making successive RE100 declarations, demand for solar energy has been rising, and now, additional demand growth can be expected as a result of government policy.