OCI Co. rose in Seoul trading after receiving a polysilicon order from Japan and NH Investment & Securities Co. said the company will report earnings growth of more than 60 percent.
The South Korean maker of the material used for cells for solar panels gained as much as 6.3 percent to 398,500 won and was at 390,000 won as of 10:06 a.m. South Korea time. The stock is heading for the highest close since Jan. 27. The benchmark Kospi Index fell 0.1 percent.
OCI won a $108.8 million supply contract from Japan’s Ferrotec Corp., the Seoul-based company said in a regulatory filing after the market closed yesterday. Operating profit may rise 61 percent this year to 1.15 trillion won ($1 billion) as production increases, Choi Ji Hwan, an analyst with NH Investment & Securities Co., wrote in a note today.
“The company is likely to continue to announce long-term supply contracts this year” boosting earnings, Kim Jae Jung, an analyst with Woori Investment & Securities Co, said in a note.
Global solar-energy capacity may reach 980 gigawatts by 2020 as governments seek to reduce fossil fuel consumption and cut emissions of greenhouse gases, a group of renewable energy associations said in December.
OCI said on Dec. 8 it plans to invest 1.9 trillion won to expand polysilicon output.
OCI shares have gained 18 percent this year, compared with a 3 percent decline in the Kospi Index.