[Click eStock] "Hanwha, Continued Poor Performance... Target Price Down"

Daishin Securities lowered the target price for Hanwha from 40,000 won to 30,400 won on the 16th. The investment rating was maintained as 'Buy.'

Hanwha recorded consolidated sales of 11.9 trillion won and an operating profit of 382.3 billion won in the third quarter. Compared to the same period last year, sales fell by 19% and operating profit plummeted by 69%, significantly missing market expectations. This was due to a decrease in fair value gains on financial assets in the financial sector and poor performance of the consolidated subsidiary Hanwha Solutions.

However, in the fourth quarter, defense export sales to Poland by Hanwha Aerospace are expected to be reflected, and performance recovery of Hanwha Solutions is anticipated due to increased solar power sales volume and spread improvement. A full-scale earnings recovery is expected to occur next year.

Yang Ji-hwan, a researcher at Daishin Securities, said, "We are lowering the target price to reflect the decrease in operating value due to the decline in profitability of the separate business segment, the poor performance and stock price decline of Hanwha Solutions, and the resulting decrease in the value of shares in the listed subsidiary."

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