Hyundai Motor Securities expects OCI Holdings′ second-quarter performance to be weak and has reduced its target price from 140,000 won to 95,000 won, a 32% decrease.

Hyundai Motor Securities expects OCI Holdings' second-quarter performance to be weak and has reduced its target price from 140,000 won to 95,000 won, a 32% decrease.: COMPANY / Reporter Kim SangJin / 2024-07-23 03:08:47

Woohyun Lee, Chairman of OCI Holdings. (Photo=OCI Holdings)

[Alpha Biz= Reporter Kim Sangjin] On the 22nd, Hyundai Motor Securities forecasted a weak second-quarter performance for OCI Holdings and noted that U.S. demand is likely to remain sluggish. Consequently, they reduced their target price from 140,000 won to 95,000 won, marking a 32% decrease.

In their report, Hyundai Motor Securities projected OCI Holdings' Q2 revenue at 1.0342 trillion won and operating profit at 99.3 billion won, which falls short of the consensus estimates of 172.2 billion won and 124.4 billion won, respectively.

The report cited that the U.S. had withdrawn its exemption of tariffs on Chinese solar products from Southeast Asia as of June 6, leading to a reduction in operations among Chinese solar manufacturers. This, in turn, has impacted OCI Holdings.

Hyundai Motor Securities added that there is a high likelihood of weak U.S. demand due to the ongoing depletion of solar module inventories in the U.S. The key issue will be whether the non-Chinese premium can be maintained.