Hanwha Solutions Lowers Target Stock Price from 60,000 to 50,000 Won

[Asia Economy Reporter Park So-yeon] Shin Young Securities has lowered the target price of Hanwha Solutions from 60,000 KRW to 50,000 KRW.

According to FN Guide on the 19th, Shin Young Securities stated in a recent report that it is lowering the target price of Hanwha Solutions due to a downward revision of Yeochun NCC's profits.

Hanwha Solutions announced that the new PVC capacity expansion in 2022 is about 2.5 million tons, including 1.1 million tons of Chinese coal chemical facilities, so tight supply will continue compared to the average annual demand of 2.5 million tons.

Shin Young Securities said, "Caustic soda will continue to be strong due to increased demand for cathode materials for secondary batteries," and forecasted, "Although a decrease in profit is expected in the chemical business in 2022, it will maintain a better level compared to other chemical companies."

The Q CELLS business is experiencing a larger deficit due to the rise in polysilicon prices. While demand remains firm due to social demands, profitability improvement is expected due to partial shipments of Chinese polysilicon expansion volume.

Profitability is expected to improve after the first half of this year, and shipments are targeted to increase from 8GW in 2021 to 9.2GW in 2022.

Last year's CAPEX was 800 billion KRW, but this year the target is 1.3 trillion KRW. This includes 550 billion KRW for chemicals, 400 to 430 billion KRW for Q CELLS, 200 billion KRW for advanced materials, and 50 billion KRW for Galleria.

Q CELLS plans to focus investment on large-area solar panels and N-type modules until the end of this year.

Shin Young Securities explained, "If the U.S. solar policy (SEMA) passes, the company's 1.8GW facility in the U.S. is expected to benefit, and additional expansion is also being considered," adding, "The company aims to develop technologies such as perovskite by 2025 and has a mid- to long-term growth strategy including hydrogen business such as water electrolysis facilities and hydrogen storage containers."

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