SEOUL, KOREA - The Welcron Kangwon Co. stock has soared for five consecutive trading days on expectations that its renewable energy business would expand rapidly in the Chinese market. At 9:03 am on July 15, the shares of Welcron Kangwon were traded at 4,345 won, up 3.70 percent (155 won) from 4,190 won. 

 

Hana-Daetoo Securities said on the stock that it has gained a growth momentum by setting its foot in the vast Chinese renewable energy market and proposed an investment opinion of "buy" and the target share price of 6,190 won.

 

According to the Chinese government's 12th Five-Year Plan (2011-2015), Chinese businesses must raise the ratio of renewable energy resources. As the country experiences fast industrialization and urbanization, the amount of trash is rising at a tremendous pace.

 

Lee Jung-ki, Hana-Daetoo Securities analyst, said, "The business of turning waste materials into fuel is actively pursued in China. Welcron Kangwon is aggressively expanding in China centered in Northeast China. Its 2015 sales revenue in China is estimated at 20 billion won." The analyst said the company's sales revenue and operating profit this year would be 74.3 billion won and 6.3 billion won, respectively, up 46.7 percent and 95.5 percent.