[Click e Stocks] Yeocheon NCC Expansion and Hanwha Solutions

[Asia Economy Reporter Junho Hwang] Kiwoom Securities has maintained the target stock price of Hanwha Solutions at 68,000 KRW for the next six months. They judged that a revaluation of the value is necessary due to the increase in equity-method profits and dividends from the expansion effect of Yeochun NCC, along with Hanwha General Chemical's plan to go public.

Kiwoom Securities first focused on the expansion effect of Yeochun NCC. The book value of Yeochun NCC is around 3.7 trillion KRW. However, Hanwha has received dividends exceeding 2 trillion KRW over the past 20 years. This year, equity-method profits and dividend amounts from the expansion are expected to increase further.

Additionally, Kiwoom Securities anticipated a revaluation of the shares held by Hanwha Solutions following Hanwha General Chemical's plan to go public. Hanwha General Chemical (with a 36.05% stake and a book value of 535.5 billion KRW) holds 50% of Hanwha Total's shares. Hanwha Total is expected to expand its ethylene production capacity to 1.53 million tons within this year through expansion.

In particular, although limited, an improvement in the performance of Hanwha Solutions' Q CELLS division can also be expected. Recently, due to the US pressure on China's Xinjiang polysilicon and the withdrawal of non-Chinese polysilicon companies, not only polysilicon but also wafer prices have surged sharply. Accordingly, despite the decline in glass prices, the Q CELLS division is expected to see limited performance improvement in the second quarter of this year. However, from the second half of this year onwards, Hanwha Solutions is expected to achieve flexible performance improvement due to the expansion of downstream sales, a sharp increase in solar installations, and the expansion of wafer manufacturers.

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