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Hanwha Solutions (Photo courtesy of Hanwha Solutions) |
[Alpha Biz= Paul Lee] Hanwha Solutions reported a strong first-quarter performance, posting operating profit of KRW 92.6 billion—far exceeding market expectations of around KRW 11 billion—prompting a wave of positive assessments from domestic brokerages.
According to the market on the 29th, 8 out of 11 securities firms issuing reports following the earnings release maintained “buy” ratings, reflecting optimism about the company’s mid- to long-term growth prospects. Target prices have also been raised from the low KRW 50,000 range to around KRW 80,000, with firms such as Eugene Investment & Securities setting an KRW 80,000 target and iM Securities upgrading its rating to “buy.”
Analysts highlighted the growth potential of Hanwha’s U.S. solar business as a key driver. With energy security concerns increasing, solar power is expected to gain structural importance, supporting sustained demand.
Particular attention is focused on the company’s Cartersville plant in the United States, scheduled to begin full-scale operations in the third quarter. The facility will complete a vertically integrated solar value chain covering ingots, wafers, cells, and modules. Given the shortage of domestic cell production capacity in the U.S., analysts expect a structural premium for U.S.-made solar cells.
Brokerages also anticipate continued growth in the second quarter, supported by expanded sales of renewable energy EPC (engineering, procurement, and construction) project assets and increased demand in the U.S. residential energy market.
The company’s decision to reduce the size of its capital increase—from KRW 2.4 trillion to KRW 1.8 trillion—was also viewed positively, as it eases shareholder dilution concerns while maintaining investment plans for future growth and financial stability.
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
