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Photo: Hanwha Solutions headquarters exterior, courtesy of Hanwha Solutions |
[Alpha Biz= Paul Lee] SEOUL – South Korean brokerages are lowering their price targets for Hanwha Solutions, citing an inevitable short-term earnings slump caused by a production stoppage at its U.S. solar module facilities.
On July 31, Samsung Securities analyst Cho Hyun-ryul projected that Hanwha Solutions would post a ₩130.3 billion operating loss in Q3 — well below consensus — due to production halts linked to quality issues at its U.S. plants. Samsung Securities trimmed its target price from ₩43,000 to ₩39,000.
Hana Securities analyst Yoon Jae-sung downgraded the stock from “Buy” to “Neutral” and slashed the target price from ₩40,000 to ₩33,000, warning that operating losses will widen:
“We expect Hanwha Solutions to swing to a ₩160.4 billion operating loss in Q3. Rising tariffs on raw materials, higher costs to secure non-China products, and lower utilization rates from cell quality issues are amplifying fixed cost burdens,” Yoon said.
Other brokerages also cut forecasts:
NH Investment & Securities: ₩51,000 → ₩45,000
Mirae Asset Securities: ₩51,000 → ₩38,000
Hanwha Investment & Securities: ₩42,000 → ₩38,000
Hanwha Solutions reported Q2 revenue of ₩3.117 trillion and operating profit of ₩102.1 billion on July 30 — returning to profit year-over-year but still missing market expectations.
Analysts expect investor sentiment to improve after Q4, but for now, warn that the stock faces earnings pressure in the coming quarter.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
