Corporate Logo(source: hanwhasolutions.com)
Meritz Securities said on October 20 that Hanwha Solutions (009830) is expected to post an operating loss in the third quarter of this year, citing low utilization rates at its U.S. production facilities that led to higher fixed costs. The brokerage lowered its target price to 33,000 won from 35,000 won, while maintaining a “Buy” recommendation.
As of 10:12 a.m., the stock was trading at 29,050 won, down 700 won (2.35%) from the previous session.
In its report, Meritz Securities estimated Hanwha Solutions’ Q3 operating loss at 126.6 billion won, mainly due to a turnaround into deficit in the renewable energy segment. The figure aligns with the company’s own forecast, which expects an operating loss of 90.6 billion won for the renewable energy division. The loss reflects increased fixed costs from underutilization at U.S. plants and a decline in production, which reduced the benefit from the Advanced Manufacturing Production Credit (AMPC) compared with the previous quarter.
Noh Woo-ho, an analyst at Meritz Securities, stated, “Hanwha Solutions needs a clear turnaround in both operating performance and financial soundness over this year and next. The chemical division is currently focusing on facility efficiency and product advancement in line with the domestic petrochemical restructuring policy.” He added, “However, the prolonged downturn in the petrochemical industry could lead to additional challenges for equity-method affiliate Yeochun NCC (YNCC).”
Noh also noted that although short-term momentum in the renewable energy division has weakened due to reduced U.S. subsidies, the segment retains strategic importance as a supplier capable of meeting the surging power demand driven by artificial intelligence (AI).
He concluded, “The explosive increase in power demand from AI and the tightening supply environment clearly reaffirm the importance of key energy providers. While the pace of recovery for Hanwha Solutions remains uncertain, its business direction is well aligned with this long-term growth trend.”
*[KOSPI] Hanwha Solutions(009830) engages in businesses such as basic materials, renewable energy, and processed materials. The market capitalization is 5.114 trillion won (as of October 17, 2025, closing price).
Corporate Logo(source: hanwhasolutions.com)
Meritz Securities said on October 20 that Hanwha Solutions (009830) is expected to post an operating loss in the third quarter of this year, citing low utilization rates at its U.S. production facilities that led to higher fixed costs. The brokerage lowered its target price to 33,000 won from 35,000 won, while maintaining a “Buy” recommendation.
As of 10:12 a.m., the stock was trading at 29,050 won, down 700 won (2.35%) from the previous session.
In its report, Meritz Securities estimated Hanwha Solutions’ Q3 operating loss at 126.6 billion won, mainly due to a turnaround into deficit in the renewable energy segment. The figure aligns with the company’s own forecast, which expects an operating loss of 90.6 billion won for the renewable energy division. The loss reflects increased fixed costs from underutilization at U.S. plants and a decline in production, which reduced the benefit from the Advanced Manufacturing Production Credit (AMPC) compared with the previous quarter.
Noh Woo-ho, an analyst at Meritz Securities, stated, “Hanwha Solutions needs a clear turnaround in both operating performance and financial soundness over this year and next. The chemical division is currently focusing on facility efficiency and product advancement in line with the domestic petrochemical restructuring policy.” He added, “However, the prolonged downturn in the petrochemical industry could lead to additional challenges for equity-method affiliate Yeochun NCC (YNCC).”
Noh also noted that although short-term momentum in the renewable energy division has weakened due to reduced U.S. subsidies, the segment retains strategic importance as a supplier capable of meeting the surging power demand driven by artificial intelligence (AI).
He concluded, “The explosive increase in power demand from AI and the tightening supply environment clearly reaffirm the importance of key energy providers. While the pace of recovery for Hanwha Solutions remains uncertain, its business direction is well aligned with this long-term growth trend.”
*[KOSPI] Hanwha Solutions(009830) engages in businesses such as basic materials, renewable energy, and processed materials. The market capitalization is 5.114 trillion won (as of October 17, 2025, closing price).