[Edaily Reporter KIM YOON-JEONG ] Shinhan Investment Securities forecast that a full-scale revaluation of corporate value will begin for KCC Corporation(002380), driven by a combination of a recovery in profitability in the silicon business, stable performance in the coatings business, rising value of investment assets, and strengthened shareholder returns. The firm maintained a “Buy” rating and set a target price of 750,000 won.

On the 25th, Lee Jin-myung, an analyst at Shinhan Investment Securities, stated, “The silicone business has entered a phase of profitability improvement after bottoming out, and the coatings business continues to generate solid profits based on a high-value-added portfolio.” He added, “Combined with rising investment asset values and the cancellation of treasury shares, a full-scale revaluation of the company’s value is expected to begin.”
In particular, the analyst highlighted that KCC Corporation is transforming into a specialty materials company centered on silicones and coatings. The silicones business is expected to enter a phase of profitability recovery, driven by a rebound in dimethylcyclosiloxane (DMC) prices, stabilized costs, and an expanded share of high-value-added products.
The analyst explained, “We forecast operating profit for the second half of the year to be 55.9 billion won, with a pattern of lower first-half and higher second-half results,” adding, “Expanding demand from high-tech industries—such as thermal management materials for AI servers, semiconductor packaging, and adhesives and heat-dissipating materials for electric vehicles—is also a factor driving medium- to long-term growth.”
The coatings business is also expected to continue posting stable results. He analyzed, “The coatings business is expected to contribute stable profits based on a high-value-added portfolio centered on automotive and marine applications,” adding, “While demand for marine coatings is expected to continue growing due to the boom in the shipbuilding industry and the expansion of eco-friendly vessels, the impact of the slowdown in the construction sector is expected to be limited.”
The value of the company’s investment assets and its shareholder return policy were also cited as factors driving corporate value growth. The analyst noted, “The rise in the value of investment assets such as SAMSUNG C&T CORPORATION, the cancellation of treasury shares, and the increase in foreign ownership are all positive developments.” He added, “With the value of investment assets (8.6 trillion won) significantly exceeding the market capitalization (4.1 trillion won), coupled with a strengthened shareholder return policy, we expect a shift in market valuation criteria.”
He continued, “We believe the current stock price does not fully reflect the recovery of the core business and the value of the company’s assets,” and set a target price of 750,000 won.