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Hanwha Solutions |
[Alpha Biz= Reporter Kim Jisun] On August 21, KB Securities downgraded its target price for Hanwha Solutions from ₩29,000 to ₩28,000, citing continued performance weakness expected through the end of this year.
In its report, KB Securities noted, "The market downturn is expected to persist at least through the second half of the year," and added, "While the scale of losses is expected to narrow each quarter, the timing of a return to profitability remains uncertain."
Hanwha Solutions reported a Q2 consolidated revenue of ₩2.6793 trillion and an operating loss of ₩107.8 billion. This represents a 20.36% decrease in revenue year-over-year and a shift to an operating loss.
Initially, it was hoped that the imposition of anti-dumping tariffs on solar panels from China to Southeast Asia by the U.S. from early June would reduce exports. However, U.S. imports of modules from Southeast Asia increased by 2% in June compared to the previous month. The U.S. government had ended the suspension of anti-dumping and countervailing duties on Chinese solar products that were rerouted through Southeast Asian countries in June, and increased tariffs on Chinese solar products from 25% to 50%. The final decision on the anti-dumping tariff investigation for Southeast Asian imports, which began in April, is expected in the spring of next year.
Despite this, KB Securities anticipates that trends such as Chinese exports shifting from the U.S. to the Middle East and increased U.S. regulatory measures against China will positively impact Hanwha Solutions' performance.
The firm maintains its investment rating for Hanwha Solutions as "Hold," forecasting a reduction in operating losses to ₩31 billion in Q3, down ₩76.8 billion from the previous quarter.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
