Will Shareholders Breathe Easier? "Hanwha Solutions Scales Down Rights Offering, Execution of Self-Rescue Plan Is Key" [Click e-Stock]

"Shareholder Burden Eased, but Execution Must Be Monitored"
"Market Recovery Pace Also Needs to Be Watched"

Regarding Hanwha Solutions, which reduced the size of its rights offering, analysts in the securities industry commented, "While it is true that the burden on shareholders has been eased, the key issue remains whether the self-rescue plan will be executed in a timely manner."

According to Kyobo Securities on April 22, analyst Jo Hyebin stated the previous day, "The 300 billion won of equity financing is planned to be pursued through overseas subsidiaries by the end of June, so it is necessary to monitor whether this proceeds as planned."

Previously, on March 26, Hanwha Solutions announced a 2.4 trillion won rights offering, but recently reduced the amount to 1.8 trillion won. The debt repayment fund was cut from 1.5 trillion won to 900 billion won, while the 900 billion won allocated for facility investment was maintained. The number of shares to be issued was reduced from 72 million to 56 million, thereby lowering the dilution rate compared to existing shares from 29.5% to 24.6%.

The 600 billion won reduction in the rights offering will be covered by the self-rescue plan. This consists of 300 billion won from the sale of non-core assets (including the sale of Hanwha Impact shares and the restructuring of Hanwha Hotels & Resorts) and 300 billion won in additional equity financing through overseas subsidiaries. Hanwha Impact is expected to sell about 10% of its 48% stake within this year.

The main targets in the mid- to long-term earnings guidance remain unchanged: consolidated sales of 33 trillion won and operating profit of 2.9 trillion won by 2030, with the renewable energy segment expected to drive growth. Sales in the renewable energy sector are projected to grow from 6.9 trillion won in 2025 to 21.5 trillion won in 2030.

The Advanced Manufacturing Production Credit (AMPC) is expected to total 5.9 trillion won from 2026 to 2030. However, analyst Jo explained, "For 2030, this figure conservatively reflects a 25% reduction in AMPC compared to current levels." The 900 billion won for facility investment will be used for the tandem pilot upgrade, TOPCon cell line conversion, and the establishment of a gigawatt-scale tandem mass production line.

Jo further commented, "As this is a preemptive response ahead of the regular credit rating evaluation in June, the timely execution of the self-rescue plan is essential," adding, "It will be important to monitor the visibility of the profit structure after the expiration of the ITC (U.S. Investment Tax Credit, scheduled to end in 2027) and the reduction of AMPC (Advanced Manufacturing Production Credit, to be cut to 75% of current levels by 2030)."

She added, "If the international and U.S. safety certifications for tandem technology proceed as scheduled and the restructuring of the chemical business is clarified, this could provide an opportunity for a revaluation of the company's valuation. However, uncertainties remain, such as the ongoing patent litigation with First Solar, so it is necessary to track both the implementation of the self-rescue plan and the pace of market recovery."

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