[Click eStock] "Hanwha's Subsidiary Share Value Rises Thanks to 'Nikola' Listed on Nasdaq"

[Asia Economy Reporter Oh Ju-yeon] Daishin Securities stated on the 11th that Nikola, a US hydrogen truck company invested in by Hanwha Comprehensive Chemical and Hanwha Energy, has seen its stock price rise significantly since its listing on the US Nasdaq market, and accordingly raised the target price for Hanwha, the holding company. Daishin Securities maintained its investment opinion on Hanwha as 'Buy' and raised the target price by 13.3% to 34,000 KRW. As of the closing price on the 10th, Hanwha's stock price was 27,050 KRW.

Nikola, the US hydrogen truck company, was listed on Nasdaq on the 4th, and its stock price rose from $33.75 on the first day of listing to $79.73 on the 9th. The value of Hanwha Energy (100% owned by H Solution) and Hanwha Comprehensive Chemical (36.05% stake held by Hanwha Solutions), which hold shares in Nikola, has been highlighted, leading to a concurrent rise in the stock prices of Hanwha Solutions and Hanwha.

Researcher Yang Ji-hwan summarized the recent Hanwha conference call, analyzing that "the poor performance caused by the 2019 defense factory operation disruption and the COVID-19 pandemic and oil price plunge in the first quarter is expected to enter a recovery phase from the second quarter of this year."

By business segment, the defense sector is expected to see performance recovery starting from the second quarter. Hanwha Aerospace may be affected by Boeing and others in the civilian business, but the defense, system, and defense business divisions are expected to continue their strong performance.

Hanwha Construction is expected to adjust its business volume this year due to increased financial burdens on the Iraqi government caused by the oil price decline. While good performance is forecasted until the second quarter, a decrease in sales to Iraq in the second half of the year is inevitable. Last year, sales at the Iraq business site were about 690 billion KRW, but this year it is expected to drop to about 450 billion KRW.

In the case of Hanwha Solutions, the solar power segment's performance in the second quarter is expected to be somewhat affected by COVID-19, but the chemical division is expected to show favorable results.

Hanwha Life is expected to improve its performance due to normalization of the loss ratio in the second quarter and the reversal of variable guarantee reserves following stock market recovery.

Regarding the Nikola investment, it was explained that the situation needs to be monitored further.

Researcher Yang said, "Nikola holds the operating rights for hydrogen tanks, so related business development is expected in the future, but since discussions are just beginning, there are limitations to what can be specifically mentioned," adding, "It is known that Hanwha currently has no plans to sell its stake in Nikola."

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