Corporate Logo(source: hanwhasolutions.com)
On April 25, Hana Securities upgraded its investment rating for Hanwha Solutions (009830) from "Neutral" to "Buy" and raised its target price from 23,000 KRW to 34,000 KRW, citing a significant earnings surprise in the first quarter of 2025.
Hanwha Solutions posted an operating profit of 30.3 billion KRW for Q1, turning profitable year-on-year and far exceeding market expectations. Despite deeper losses in its petrochemical division, a robust performance in the renewable energy business drove the positive result. However, a non-operating loss of approximately 124.7 billion KRW led to a net loss attributable to controlling shareholders.
The renewable energy segment reported an operating profit of 136.2 billion KRW, up 125% quarter-on-quarter, largely due to substantial improvements in its residential energy operations.
Hana Securities forecasts Q2 operating profit to improve by an additional 100 billion KRW over Q1, based on expectations of narrowing petrochemical losses and further gains in renewables.
Annual earnings estimates for both 2025 and 2026 have been significantly revised upward, supported by improved earnings visibility in the residential energy sector and higher module prices. The core driver is Enfin, the 100%-owned U.S. subsidiary of Hanwha Q CELLS. Since launching its third-party ownership (TPO) product last year, Enfin has rapidly expanded, signing over 10,000 contracts across six U.S. states by October.
In a recovering residential solar market boosted by potential interest rate cuts, and with TPO demand accelerating even faster, Hana Securities highlighted Hanwha Solutions’ vertically integrated business model as a key advantage over competitors focused solely on installation and operations. The company also expects TPO revenue to outpace asset-backed securities (ABS)-linked returns.
Additionally, with anti-dumping and countervailing duties (AD/CVD) imposed on solar imports from four Southeast Asian countries and growing domestic demand, Hana Securities anticipates an inevitable drop in U.S. module inventories and a rebound in prices.
“Management has already indicated that module prices began to inch up in Q1,” said analyst Yoon Jae-sung. “We view this as a setup for further upward revisions in earnings estimates, and thus, we designate Hanwha Solutions as our top pick in the sector.”
*[KOSPI] Hanwha Solutions(009830) engages in businesses such as basic materials, renewable energy, and processed materials. The market capitalization is 4.61 trillion won(as of April 24, 2025, closing price).
Corporate Logo(source: hanwhasolutions.com)
On April 25, Hana Securities upgraded its investment rating for Hanwha Solutions (009830) from "Neutral" to "Buy" and raised its target price from 23,000 KRW to 34,000 KRW, citing a significant earnings surprise in the first quarter of 2025.
Hanwha Solutions posted an operating profit of 30.3 billion KRW for Q1, turning profitable year-on-year and far exceeding market expectations. Despite deeper losses in its petrochemical division, a robust performance in the renewable energy business drove the positive result. However, a non-operating loss of approximately 124.7 billion KRW led to a net loss attributable to controlling shareholders.
The renewable energy segment reported an operating profit of 136.2 billion KRW, up 125% quarter-on-quarter, largely due to substantial improvements in its residential energy operations.
Hana Securities forecasts Q2 operating profit to improve by an additional 100 billion KRW over Q1, based on expectations of narrowing petrochemical losses and further gains in renewables.
Annual earnings estimates for both 2025 and 2026 have been significantly revised upward, supported by improved earnings visibility in the residential energy sector and higher module prices. The core driver is Enfin, the 100%-owned U.S. subsidiary of Hanwha Q CELLS. Since launching its third-party ownership (TPO) product last year, Enfin has rapidly expanded, signing over 10,000 contracts across six U.S. states by October.
In a recovering residential solar market boosted by potential interest rate cuts, and with TPO demand accelerating even faster, Hana Securities highlighted Hanwha Solutions’ vertically integrated business model as a key advantage over competitors focused solely on installation and operations. The company also expects TPO revenue to outpace asset-backed securities (ABS)-linked returns.
Additionally, with anti-dumping and countervailing duties (AD/CVD) imposed on solar imports from four Southeast Asian countries and growing domestic demand, Hana Securities anticipates an inevitable drop in U.S. module inventories and a rebound in prices.
“Management has already indicated that module prices began to inch up in Q1,” said analyst Yoon Jae-sung. “We view this as a setup for further upward revisions in earnings estimates, and thus, we designate Hanwha Solutions as our top pick in the sector.”
*[KOSPI] Hanwha Solutions(009830) engages in businesses such as basic materials, renewable energy, and processed materials. The market capitalization is 4.61 trillion won(as of April 24, 2025, closing price).