[Click eStock] "Hanwha Solutions, Q1 Loss Expected... Investment Rating and Target Price Downgraded"

Ebest Investment & Securities predicted an operating loss for Hanwha Solutions in the first quarter of this year on the 23rd. Accordingly, they downgraded the investment opinion to 'Hold' and lowered the target stock price to 32,000 KRW.

Researcher Lee Ju-young of Ebest Investment & Securities stated, "In the first quarter of this year, the seasonal off-season combined with a decline in module prices is expected to result in a solar power operating loss turnaround (-106 billion KRW)."

Lee forecasted that the excess inventory of solar modules would be difficult to resolve within the year. The United States plans to impose anti-dumping tariffs on modules imported from four Southeast Asian countries starting in June to circumvent export regulations. As a result, a large volume of imports is rapidly entering ahead of the regulation implementation.

Lee emphasized, "It is important to note that the U.S. is already in a state of module inventory surplus, and modules imported during the tariff exemption period must be used within six months from the exemption end date." He analyzed, "To consume the currently incoming volume within six months, it is expected that demand for new volumes within the year will be difficult to occur."

Moreover, Chinese companies' module factories in the U.S. are also beginning full-scale operations. It is understood that the U.S. factories of LONGi, Canadian Solar, and Jinko Solar have already started operating. Rather, there is concern about an increase in module supply within the U.S.

Lee projected, "The annual operating profit in the solar power sector for 2024 is expected to fall by 63.4% compared to the previous year, to 207.8 billion KRW." He analyzed, "Due to the decline in module prices, oversupply, and poor performance of the chemical business division, the only support is the power generation business, but even this is difficult to predict, resulting in insufficient incentives for valuation recovery."

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