[Click eStock] "Hanwha Solutions, Direction Over Short-Term Volatility... Comprehensive Profit Growth"

[Asia Economy Reporter Oh Ju-yeon] Daishin Securities maintained its 'Buy' rating and a target price of 65,000 KRW for Hanwha Solutions, stating that although short-term stock price volatility is increasing due to uncertainties related to the US presidential election, the structural growth direction of the solar energy industry driven by strengthened eco-friendly policies remains unchanged.

Additionally, although not reflected in the target price, the value of hydrogen-related businesses is expected to act as a positive additional factor in the future.

According to Daishin Securities on the 21st, Hanwha Solutions' operating profit for the third quarter of this year is forecasted to be 211.4 billion KRW, slightly exceeding the market expectation of 192.7 billion KRW. The main reason for the upward revision of estimates is the strong performance in the Chemical and Advanced Materials divisions.

In the Chemical division, it was diagnosed that favorable market conditions for key products (LDPE, PVC, etc.) continue. Toluene Diisocyanate (TDI) also saw improved performance due to a sharp price increase caused by operational disruptions at competitors, although the caustic soda market conditions were somewhat sluggish.

Researcher Han Sang-won said, "In the solar energy sector, shipments increased along with demand recovery in US residential markets, and Advanced Materials is expected to turn profitable as sales contributions from electronic materials expanded more than anticipated." He added, "Retail was offset by increased holiday gift sales despite the implementation of social distancing level 2.5 due to the resurgence of COVID-19."

Meanwhile, subsidiaries such as Yeocheon NCC, Hanwha Total Chemical, and Total are expected to improve performance, but earnings are forecasted to decline due to the disappearance of one-time gains (87 billion KRW related to Nikola) from the previous quarter.

Regarding the green hydrogen (water electrolysis) business, although the technology for green hydrogen production is currently possessed, commercialization issues mean the target is expected to be in 2022?23.

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