[Click eStock] "Hanwha Solutions, Beneficiary of Energy Security Amid Natural Gas Surge"

[Asia Economy Reporter Ji Yeon-jin] Hyundai Motor Securities forecasted on the 29th that the surge in natural gas prices caused by the Russia-Ukraine war will boost demand for solar power generation, leading to a reevaluation of Hanwha Solutions' corporate value.

The company reported first-quarter sales of 2.97 trillion KRW, a 23.5% increase compared to the same period last year, and an operating profit of 157.9 billion KRW, a 37.98% decrease. This performance is considered better than market consensus. Kang Dong-jin, a researcher at Hyundai Motor Securities, stated, "The Russia-Ukraine war is accelerating decarbonization from an energy security perspective, causing a surge in demand," adding, "With the rise in natural gas prices, solar power generation is becoming more economical."

Even if solar panel prices rise, the economics of solar power generation remain favorable. Moreover, the proportion of module prices in installation costs is around 30% for residential projects, so the impact on project costs is limited, making it possible to pass on price increases caused by raw material surges.

Especially in Europe, where natural gas prices are extremely high, the installation of renewable energy to replace Russian natural gas is accelerating, and China is also encouraging rooftop solar installations to resolve power shortage issues. Additionally, in the United States, natural gas prices have surged due to LNG exports, and public opinion continues to support strengthening renewable energy investments from an energy security perspective, which is expected to be a positive factor.

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