[Edaily Reporter kyoungeun kim ] On the 22nd, NH INVESTMENT & SECURITIES maintained its “Buy” investment rating for KCC Corporation(002380)and raised its target price by 7% from 680,000 won to 730,000 won.
Lee Eun-sang, an analyst at NH INVESTMENT & SECURITIES, stated, “The target price increase reflects the rising value of the company’s stake in SAMSUNG C&T CORPORATION and the reduction in the number of outstanding shares resulting from the cancellation of treasury stock,” adding, “We view the continued expansion of shareholder returns positively, given the clear trajectory of profitability improvement in the Silicon business division.”
The firm believes the silicon division—KCC’s core business—has entered a period of structural profit recovery. The analyst explained, “The effects of product mix improvements focused on high-value-added products and price hikes are becoming visible,” adding, “Following Dow’s closure of its UK plant, HANCHEM CO.,LTD’s sale of its silicon division has coincided with this, marking the full-scale reorganization of the global supply chain.” As Elkem transfers its organosilicon business to its largest shareholder, Blue Star, and restructures its operations to focus on metallurgical silicon, KCC Corporation’s operating profit margin for the silicon division is projected to improve to around 5% (up 4 percentage points year-over-year) in the second half of 2026.
Shareholder returns are also expanding. On the 20th of last month, KCC Corporation announced a redistribution plan based on a special dividend of SAMSUNG C&T CORPORATION(028260) as part of its corporate value enhancement strategy. The analyst stated, “The available funds for the special dividend are estimated at approximately 220 billion won (15,000 won per share) and are scheduled to be paid out in 2028.” In addition, the company plans to gradually cancel 77% of its treasury stock by September 2027, which represents 13% of the total number of issued shares.