[Featured Stock] Hanwha Solutions Declines on Weak Earnings Outlook... New Low

Hanwha Solutions continued its decline for the third consecutive day, hitting a 52-week low during trading.

As of 9:38 a.m. on the 17th, Hanwha Solutions was trading at 21,550 KRW, down 300 KRW (1.37%) from the previous day. During the session, the price fell to 21,500 KRW, setting a new 52-week low.

Poor earnings forecasts appear to be the main factor behind the stock price decline. NH Investment & Securities expects Hanwha Solutions to record an operating loss of 74.7 billion KRW in the third quarter of this year, falling short of market expectations. Youngkwang Choi, a researcher at NH Investment & Securities, stated, "Reflecting weaker-than-expected conditions in the chemical and solar sectors, we have significantly lowered our operating profit forecast and reduced the target price to 23,000 KRW. With continued inflows of Southeast Asian products and rising self-sufficiency rates, it is difficult to see an improvement in the module supply-demand balance in the U.S., and the trend of worsening financial structure, including an increase in net borrowings, is expected to continue into 2025."

Hana Securities also estimates a third-quarter operating loss of 84.3 billion KRW, significantly below consensus. Jaesung Yoon, a researcher at Hana Securities, analyzed, "The solar business operating loss of 73.2 billion KRW is below expectations. Although module shipments are expected to improve by 30% compared to the previous quarter, prices and costs remain similar to the previous quarter, so profitability will only see a slight improvement."