[Click eStock] "OCI Holdings to Benefit from Rising Demand for Non-Chinese Materials... Holding Company Revaluation Also Positive"

On June 11, Hyundai Motor Securities stated that OCI Holdings is expected to benefit from the restructuring of global supply chains and increased demand for non-Chinese materials driven by changes in U.S. policy. At the same time, the company is drawing attention for its undervaluation amid a broader market trend of reevaluating holding companies.

Kang Dongjin, a researcher at Hyundai Motor Securities, explained, "In order to receive AMPC, the use of parts or critical minerals manufactured by FEoC (Foreign Entities of Concern) is restricted, which is positive for the company’s demand." This analysis is based on policy changes related to the U.S. Inflation Reduction Act (IRA), which are intensifying efforts to exclude Chinese solar materials. As a result, demand for OCI Holdings’ non-Chinese polysilicon and wafer products is expected to increase.

In particular, under the tax reform enacted during former President Trump’s administration, in order to receive AMPC benefits, the use of parts or critical minerals manufactured by FEoC is prohibited. This policy is expected to inevitably lead to increased demand for non-Chinese polysilicon.

Kang emphasized the potential for stronger demand for non-Chinese materials, noting, "From the perspective of developers, in order to receive ITC, projects must be operational by 2028. If modules using materials manufactured by FEoC are purchased, ITC cannot be received."

Currently, OCI Holdings is working to expand its cell factory in the United States, with full-scale operations scheduled for the first half of 2026. The company is also making concrete moves to enter the wafer business. If vertical integration of non-Chinese materials from polysilicon to wafers and cells becomes possible, OCI Holdings’ strategic importance within the global solar supply chain is expected to increase further. Regarding this, Kang explained, "The materialization of the wafer business and expansion of cell production in the U.S. will serve as factors for a multiple re-rating based on fundamental improvement."

The situation in China may also work favorably for OCI Holdings. With the recent restructuring of China’s power industry and the prolonged deterioration of performance among polysilicon companies, possibilities for restructuring and mergers and acquisitions are being raised. As a result, price increases may be pursued after regular maintenance in the third quarter of this year, and the restructuring of China’s power market could lead to restructuring within the solar industry, which is also a positive factor.

Kang analyzed, "Currently, holding companies are being reevaluated across the stock market, and OCI Holdings continues to show an attractive valuation at a P/B ratio of 0.35 to 0.4. There is ample room for further revaluation from a business perspective as well, such as the materialization of the wafer business."