Hanwha Solutions Aims for 10 Trillion KRW in Sales Relying on Solar Power

One-Time Cost Resolution... Long-Term Growth Outlook for Solar Power

[Asia Economy Reporter Minwoo Lee] Hanwha Solutions is expected to surpass 10 trillion KRW in sales and 500 billion KRW in operating profit this year. This is attributed to a reduction in significant one-time expenses from last year, the withdrawal from duty-free shops, and strong performance in the solar power and chemical sectors.

On the 23rd, Daishin Securities forecasted that Hanwha Solutions will achieve sales of 10.055 trillion KRW and operating profit of 569 billion KRW this year. Sales are expected to increase by 5.8% and operating profit by more than 50% compared to last year.

Notably, a remarkable improvement in performance is anticipated starting from the first quarter. Operating profit is projected to reach 99.6 billion KRW, a 232% increase from the fourth quarter of last year. Considering the one-time factors from the previous quarter, this target is deemed achievable. In fact, Hanwha Solutions’ operating profit in Q4 last year was 30 billion KRW, down 80.3% from the previous quarter and significantly below the market expectation of 85.2 billion KRW. This was due to year-end one-time expenses amounting to 87 billion KRW, including 20 billion KRW in bonuses, 40 billion KRW in provisions, and 130 billion KRW in bad debt write-offs.

Daishin Securities emphasized the need to pay attention to Hanwha Solutions’ solar power business division this year. The division showed an upward trend by achieving an operating profit of 76.3 billion KRW in Q4, a 16% increase from the previous quarter. Sangwon Han, a researcher at Daishin Securities, explained, "This year, the positive effects of average selling price (ASP) increases due to improved product mix and regional strategies will continue, along with higher module sales and downstream expansion, leading to strong performance."

The retail division is also expected to improve. The duty-free shop, which had an annual deficit of around 30 billion KRW, is withdrawing, while the opening of the Galleria Department Store Gwanggyo branch and the elimination of approximately 7 billion KRW in one-time expenses from Q4 last year are scheduled. Additionally, the chemical sector, which had been experiencing sluggish market conditions, is expected to return to profitability from the first quarter. The reduction in depreciation expenses following the suspension of the polysilicon business is estimated to amount to about 30 to 40 billion KRW annually.

Daishin Securities gave Hanwha Solutions a "Buy" rating with a target price of 25,000 KRW. The closing price on the previous trading day was 20,300 KRW.

This content was produced with the assistance of AI translation services.