Shinhan Investment halves price target on OCI

Sep 28, 2011 - Shinhan Investment Corp kept its "buy" rating on the stock of South Korean polysilicon producer OCI Co Ltd (SEO:010060) but halved its share price target to KRW 320,000 from KRW 645,000.

The move reflects falling prices of solar power products and OCI's decision to cut product prices in order to cope with competition pressure and keep its customers. The company's new strategy may weigh on its profitability in the short term, Shinhan Investment analyst Lee Eungju said.

Eungju projects that selling prices of solar products will remain weak until the end of 2011 as supply exceeds demand globally.

(KRW 1,000 = USD 0.854/EUR 0.627)

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