[Featured Stock] 'Oil Crisis' Sparks Renewable Energy Expansion Hopes... Hanwha Solutions Soars

[Asia Economy Reporter Ji Yeon-jin] Hanwha Solutions is experiencing a sharp increase during trading on the 31st amid expectations that the transition to renewable energy will accelerate due to the recent surge in international oil prices.

Hanwha Solutions traded up to 39,500 KRW, a 7.31% increase compared to the previous day, during intraday trading. It then slightly declined but was still up 5.84% as of 9:37 AM. Hanwha Solutions has shown a continuous rise for five consecutive trading days since the 25th, right after Hanwha Group announced plans to invest 20 trillion KRW over the next five years in future industries such as energy, carbon neutrality, defense, and aerospace within the domestic market.

The sharp rise today is interpreted as reflecting expectations that renewable energy will benefit following the European Union (EU)'s recent decision to ban about 90% of Russian crude oil imports.

Jung Yeon-seung, a researcher at NH Investment & Securities, stated in a report published on the 27th, "According to the EU's REPowerEU policy, the EU plans to increase the share of renewable energy from the current 40% to 45% by 2030," adding, "The installation capacity will be doubled by 2025, and cumulative solar power installations are planned to expand to 600 GW by 2030."

Researcher Jung emphasized regarding Hanwha Solutions, "About 60% of sales in the solar power sector are directed to the US and Europe, and in the US, it holds the number one market share for residential and commercial modules," adding, "In the short term, a reduction in losses is expected due to rising module sales prices, and in the mid to long term, cost burden relief is anticipated due to increased polysilicon supply, along with market expansion and benefits from the European legislation mandating solar power installation on new buildings."

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