[Click eStock] "JC Chemical Expected to Benefit from Globally Watched Indonesian Biofuel Market"

On January 14, independent research firm ValueFinder analyzed that JC Chemical is expected to benefit from directly owning palm plantations in the Indonesian biofuel market, which is drawing global attention.

Founded in 2006, JC Chemical is a renewable energy company specializing in the production of biodiesel and bio-heavy oil. The company was listed on the KOSDAQ market in 2011 and expanded its business in 2012 by acquiring a company with a plantation of about 10,000 hectares. By expanding its diverse domestic and international raw material supply chains and developing technology through a dedicated R&D organization, JC Chemical has secured a cost advantage over its competitors. Going forward, the company is expected to be re-evaluated as a comprehensive eco-friendly energy company with self-sufficiency in raw materials, rather than simply a biofuel manufacturer.

Lee Chungheon, a researcher at ValueFinder, stated, "Indonesia is pursuing the introduction of the B50 policy, which blends up to 50% palm oil into biodiesel. As of last year, the blend ratio had already increased to 40%. Since Indonesia is leading the world's most aggressive palm oil blending policy, the company is also expected to benefit from these government initiatives."

Lee particularly highlighted that over the past several years, Hyundai Motor Group has been expanding its strategic business in Indonesia by building production bases, securing biodiesel raw materials, and developing a hydrogen ecosystem. After Hyundai began operating Indonesia's first complete vehicle plant in 2022, it achieved the number one market share in the local electric vehicle market within just one year.

Lee added, "JC Chemical is the only domestic biofuel company that has achieved full vertical integration, from upstream palm plantations (the main raw material) to downstream biofuel production. If the company benefits from both market growth and industry expansion in the future, it is expected that its strong performance will lead to a revaluation of its corporate value."