In early trading on the 15th, OCI Holdings is surging 19%. Investor sentiment appears to be buoyed by news that the company will sign a contract to supply solar-grade polysilicon to SpaceX, led by Tesla CEO Elon Musk.
As of 9:22 a.m. that day, OCI Holdings was trading at 225,000 won on the Korea Exchange, up 36,900 won (19.62%) from the previous session.
There was a report that OCI Terasys, a Malaysian subsidiary of OCI Holdings, has decided to sign a solar polysilicon supply contract with SpaceX and is in the final stages of coordination. The industry views the size of the deal at around 1 trillion won. It is also known that a multi-year supply contract has been signed for three to five years.
This is said to be about half of OCI Terasys' solar-grade polysilicon production capacity (Capa). As of the end of last year, OCI Terasys' Capa was 35,000 tons per year, with an actual operating rate of about 90%.
Cho Jae-won, an analyst at Kiwoom Securities, said, "An increase in long-term supply contract volume is a factor that enhances stability in terms of utilization rates and a driver of corporate value," but added, "Assumptions of an 80%–90% utilization rate are already reflected in earnings estimates, so the short-term earnings impact is limited."