[Click eStock] “Hanwha Solutions, Solar Power Business Reached Bottom”

Major Countries' Solar Power Expansion Trend and Raw Material Price Decline
Hyundai Motor Securities "Hanwha Solutions Target Price Maintained at 52,000 Won"

[Asia Economy Reporter Gong Byung-sun] There is a growing outlook that Hanwha Solutions' solar power business will gradually recover. As major countries such as the United States rapidly expand the share of solar power generation, the decline in wafer and cell prices is also expected to positively impact profitability improvement.

On the 8th, Hyundai Motor Securities maintained a 'Buy' investment opinion and a target price of 52,000 KRW for Hanwha Solutions. The previous day's closing price was 36,150 KRW.

Recently, the trend of major countries expanding solar power generation has led to the maintenance of the target price. The U.S. government, faced with solar module production capacity limited to 7.0 gigawatts (GW), has aimed for value chain internalization through large-scale subsidies. As a result, the U.S. solar market is expected to grow rapidly from 25 GW this year to 30 GW next year, and an average of 60 GW annually from 2025 to 2030.

Germany is also increasing its solar power share. On the 8th (local time), Germany's 'traffic light coalition' was launched, with the Green Party participating, accelerating energy transition policies. The coal phase-out timeline has been moved forward from 2038 to 2030, and the share of renewable energy, currently around 45%, is planned to increase to 80% by 2030. Additionally, the solar power generation capacity target by 2030 has been raised from 100 GW to 200 GW. Legislation is also being considered to install solar equipment on all roofs and mandate solar installation on new commercial building rooftops.

Profitability improvement due to the decline in wafer and cell prices is also a positive factor. The drop in polysilicon prices appears to have influenced wafer and cell market prices. Consequently, Chinese solar equipment manufacturers such as Longi and Zhonghuan Solar have also lowered prices, reducing Hanwha Solutions' cost burden.

Kang Dong-jin, a researcher at Hyundai Motor Securities, explained, "The decline in wafer and cell prices, which are major raw materials for Hanwha Solutions, is positive for the profitability improvement of the solar power business," adding, "It is judged to meet the minimum conditions for profitability rebound, and both institutional and market indicators suggest the solar power business has reached its bottom."

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