Kumyang shares surge 11% on battery supply deal with Nanotech

On June 27, at the Busan Mobility Show Press Day held at BEXCO in Haeundae, Busan, Vice President Lee Kwang-yong of Kumyang unveiled a four-wheel drive model equipped with a 4695 cylindrical battery. (Yonhap)

Shares of South Korean chemical company Kumyang Co. surged on Friday after the company announced a major contract with U.S.-based Nanotech Energy to supply secondary batteries. Kumyang’s stock price was up 11.16 percent at 55,300 won ($41.6) as of 10:52 a.m.

Kumyang disclosed after market closing on Thursday that it has secured a $1.72 billion contract to supply 2170 batteries to Nanotech Energy over six years, starting next year.

This marks Kumyang’s first major order since entering the secondary battery business.

The 2170 batteries will be used for various applications, including energy storage systems (ESS) and uninterruptible power supply (UPS) systems.

Meanwhile, Yuhan Corp.’s shares saw gains, despite news that the company had ended its collaboration with Janssen for the development of a fourth-generation EGFR-targeting cancer treatment.

As of 10:54 a.m., Yuhan’s stock was up 16.65 percent at 146,400 won.

Yuhan said that the decision to halt further development was due to the significant reduction in the incidence of secondary EGFR resistance mutations in patients treated with a combination of its third-generation EGFR inhibitor, lazertinib, and Janssen’s bispecific antibody, amivantamab. As a result, Yuhan sees less need for a fourth-generation EGFR TKI, it added.

Yuhan also announced a separate deal on Friday to supply active pharmaceutical ingredients for HIV treatments, valued at 107.6 billion won.

Semiconductor stocks, which had plummeted the previous day, rebounded sharply on Friday.

SK hynix Inc. shares rose 3.01 percent to 157,400 won as of 10:55 a.m. while Samsung Electronics Co. was up 1.74 percent to 64,200 won.

The previous day’s declines were driven by concerns over the semiconductor industry’s outlook, following a Morgan Stanley report during Korea’s Chuseok holiday.

Despite the U.S. Federal Reserve’s decision to cut interest rates by 0.5 percentage point, these concerns overshadowed the market.

However, analysts now believe the selloff was excessive.

Hwang Min-seong, an analyst at Samsung Securities Co., noted that while there are concerns about a potential supply glut, the likelihood is low.

He added that SK hynix’s stock could see gains after November, when uncertainties surrounding the U.S. presidential election begin to clear.

Overnight in the U.S. stock market, major tech stocks such as Nvidia Corp. (up 3.97 percent), Tesla Inc. (up 7.36 percent), and Meta Platforms Inc. (up 3.93 percent) led the gains, helping boost the overall market.