[Click eStock] "From Hydrogen to Secondary Batteries... Focus on Hanwha's Separate Businesses"

Potential of Ammonia-Based Hydrogen Business... Synergy Expected Among Group Companies
Rising Expectations for Secondary Battery Electrode Equipment Manufacturing

[Asia Economy Reporter Minwoo Lee] There is an analysis suggesting the need to pay attention to Hanwha's standalone core industries. It is expected that growth trends may emerge in various areas, from hydrogen-related businesses to the manufacturing of secondary battery-related equipment in the machinery sector.

On the 1st, Samsung Securities maintained a 'Buy' rating on Hanwha with this background and raised the target price by 10% to 44,000 KRW. The closing price on the previous day was 34,800 KRW.

Hanwha's standalone core businesses consist of defense, overseas (global), and machinery sectors. Among these, the defense industry sector is expected to show visible results in areas such as space and lasers. The global sector plans to expand its business in precision chemicals, including hydrogen. The machinery sector is anticipated to see increased sales and orders in secondary batteries and display businesses.

Samsung Securities predicted that the hydrogen and precision chemical business in the global sector is likely to be related to ammonia. This is because converting hydrogen into liquid ammonia compounds allows for storing large amounts of hydrogen and enables long-distance transportation, making it an efficient hydrogen transport method. Hanwha has already announced plans to invest 190 billion KRW by 2023 to increase nitric acid production capacity from 120,000 tons to 520,000 tons. Researcher Yang Il-woo of Samsung Securities explained, "Ammonia is a raw material for nitric acid, and since Hanwha Group subsidiaries form a hydrogen value chain, investment in the ammonia business is highly likely to create synergy with existing and subsidiary businesses."

Additionally, Hanwha's machinery sector is known to have strengths in manufacturing equipment for secondary battery electrode processes. As secondary battery manufacturers are expected to expand facilities in multiple countries, structural performance growth in Hanwha's machinery sector standalone business is anticipated. Researcher Yang advised, "Considering the launch of the hydrogen business council this month and the Nuri rocket launch next month, it is necessary to maintain continuous interest in Hanwha, which has significant exposure to related industries."

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