Source: Samsung Securities (June 17, 2026) Investment Rating & Target Price: BUY / 160,000 KRW Key Momentum: Turnaround in the materials sector driven by semiconductor industry recovery and sustained profitability in Carbon Chemicals.
📊 1. Valuation & Investment Indicators
- Investment Rating: Maintain BUY (Target Price raised 3.2% from 155,000 KRW to 160,000 KRW)
- Valuation Basis: Applied Sum-of-the-Parts (SOTP) valuation reflecting upward adjustments to annual earnings estimates for 2026–2027.
- Financial Data: 2026E EPS (Earnings Per Share) raised to 12,272 KRW (a 12.7% increase).
- Key Multiples: 2026E P/E (adj) at 8.7x, EV/EBITDA at 6.2x.
🚀 2. Market Opportunities (TAM) & Performance Estimates
Semiconductor Materials Turnaround:
- Major materials—phosphoric acid, hydrogen peroxide, and polysilicon—are entering a recovery cycle.
- Phosphoric acid production volume is expected to expand following capacity expansion completion in Q3.
- Hydrogen peroxide utilization rate is projected to climb to 90% in the second half of the year.
Q2 Earnings Outlook:
- Operating profit is expected to reach 41 billion KRW, outperforming the previous estimate (32.9 billion KRW) by 25%.
Carbon Chemicals Division:
- Sales of pitch, which faced setbacks due to Middle East geopolitical tensions, are expected to expand starting in the second half.
📝 Editor’s Comment
The rebound in the semiconductor industry is effectively driving OCI’s earnings recovery. Notably, the Carbon Chemicals division has maintained solid profitability despite external volatility such as global oil price fluctuations and geopolitical risks. As the utilization rates of semiconductor materials rise and the effects of capacity expansions take full effect in the second half, the company’s profit base is expected to strengthen further. However, regarding polysilicon, the supply-demand improvement is now projected for Q4 due to client inventory levels; therefore, continued monitoring of related industry trends is advised.
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