OCI Holdings’ share price rose by 24.9% to 235,000 won on 15 April, which was mainly due to news about the company’s new solar polysilicon supply contract with SpaceX.
The industry estimates the scale of this contract to be around 1 trillion won and that it is a multi-year supply contract spanning 3 to 5 years.
A near-term overshooting of 20%-30% is possible following a deal with SpaceX. However, my NAV analysis of OCI Holdings suggests 23% lower downside risk from current levels (6-12 month view).
Source: OCI Holdings
