The author is an analyst for NH Investment & Securities. He can be reached at minjae.lee@nhqv.com -- Ed.In 1H23, Europe reduced its fossil fuel use by more than 2% y-y thanks to strong use of wind, solar and NPPs, in turn contributing to a stabilizing in natural gas prices. In addition, the Energy C
The author is an analyst for NH Investment & Securities. He can be reached at sw.kang@nhqv.com -- Ed.The Fed’s June pause was a move to slow hikes down to 12.5bp. A July FOMC rate hike seems inevitable. However, the July hike may be the last given the steep decline in core service prices and shrinki
The amount of foreign direct investment (FDI) declared in Korea in the first half of this year has recorded its highest since statistics started being compiled in 1962. Analysis suggests that Korea has emerged as an alternative investment destination to China due to U.S.-China tensions.The Ministry
Korean companies, including Samsung Electronics, are lagging behind their international peers in RE100 implementation. Carbon neutrality, especially RE100, is also now emerging as a trade barrier for Korean exporters. Products from companies can be subject to additional regulation if the companies f
The Chinese battery industry, which had been focused on attacking the European electric vehicle battery market led by Korea, is extending its reach to the energy storage system (ESS) market. They are partnering with their country’s strong solar power value chain to challenge the European household s
The author is an analyst for NH Investment & Securities. He can be reached at sw.kang@nhqv.com -- Ed.Ahead of the announcement of 2H23 economic policy direction, the media has reported that policy focus will shift from prices to the economy. The government's demand for lower instant noodle price
Twelve corporate venture capital (CVC) firms have been established over a period of one and a half years after the government allowed holding companies to hold corporate venture capital (CVC). These CVCs have invested more than 200 billion won (US$154 million) in Korean venture startups.According to
A surge in the use of air conditioning during the summer would bode well for KEPCO’s earnings, as such a development would bring an increase in application of the highest electricity rate. That said, one risk factor is the possibility of the government adopting electricity rate discount policy in re
Last year, companies’ debt-to-equity ratio hit an eight-year high of about 102 percent. The rising interest rate increased interest burdens and toughened business conditions. The number of zombie companies unable to cover interest expenses with operating income reached 35 percent.The interest covera
On June 13, Samsung Electronics announced a partnership with SolarEdge, the world’s No. 1 solar smart inverter company. The two companies will team up to promote Net Zero Homes, the future of housing, in the global market.Samsung Electronics explained that global companies promoting the Net Zero Hom
The author is an analyst for Shinhan Securities. He can be reached at ldh@sinhan.com -- Ed.Materials/industrial goods industry outlook for summer 2023We maintain our OVERWEIGHT view on materials and industrial goods industries for the summer (June-August) of 2023. We believe earnings will continue t
The construction of the Shin Hanul 3 and 4 reactors will begin soon after its cancellation under the previous Moon Jae-in administration.The Korean Ministry of Trade, Industry and Energy held a meeting at the Sejong Government Office on June 12 to deliberate on and resolve the approval of an impleme
As the proliferation of solar power continues, the share of renewable energy is growing, leading to concerns about the management of power that is produced in excess of demand. Critics are urging the government to swiftly establish measures to address this issue.According to sources in the electrici
The author is an analyst for NH Investment & Securities. He can be reached at minjae.lee@nhqv.com -- Ed.For June, we change our recommended plays to Doosan Enerbility and KEPCO, drawing attention to both expectations for large-scale NPP projects and improved profitability (thanks to a progressive ra
Senior members of the Ukrainian and Polish governments asked Korean Minister of Land, Infrastructure, and Transport Won Hee-ryong to make investment in the Three Seas Initiative (3SI) during Won’s visit to Poland to discuss Korea’s participation in Ukraine’s reconstruction project.The 3SI envision t
HD Hyundai Energy Solutions, a solar subsidiary of HD Hyundai, announced on May 22 that they have signed a contract with Portugal's MCA to supply 22 MW of solar modules.Under this contract, HD Hyundai Energy Solutions will supply high-output 500 W modules by August of this year and MCA plans to
Korea Western Power (KOWEPO)has officially signed a contract for a solar power project in Manah, Oman.Korea Western Power attended the Oman Manah 500MW Solar Power contract signing ceremony in Oman on the 18th (local time). The event was hosted by the Oman Power and Water Procurement Company (OPWP),
The Korean government and industry have begun to promote the Carbon Free Energy (CFE) system. CFE is a campaign to use 100% energy sources that do not emit greenhouse gases. It is regarded as a way to respond to the RE100 campaign, which requires 100 percent of electricity to be supplied through the
SK ecoplant announced on May 17 that it has signed an investment agreement with World Energy GH₂ of Canada at Lotte Hotel Seoul to participate in the US$4.5 billion Nujio’qonik Green Hydrogen Project. World Energy GH₂ is developing a large-scale green hydrogen project based in the area of Newfoundla
The author is an analyst for NH Investment & Securities. He can be reached at yk.choi@nhqv.com -- Ed.We lower our TP on Hanwha Solutions by 14% to W65,000. While there are short-term concerns over slowing solar demand in the US and falling solar product prices, the impact should be smaller than fear