[E-Daily Reporter KIM YOON-JEONG ] Hana Securities forecast that HANWHA SOLUTIONS(009830)will post second-quarter earnings that exceed market expectations, driven by rising U.S. solar module prices and improvements in its chemicals division. The firm anticipates continued earnings growth in the solar business as the U.S. solar module supply glut eases, coupled with the operational benefits of the Cartersville cell factory. It maintained its “Buy” investment rating and a target price of 60,000 won.

On the 10th, Yoon Jae-sung, an analyst at Hana Securities, stated, “Second-quarter operating profit is expected to exceed the market consensus by 29% thanks to improvements in the solar and chemical divisions,” adding, “The oversupply in the U.S. solar module market has been resolved, and prices have begun to rise.”
Hana Securities projected HANWHA SOLUTIONS’ second-quarter operating profit at 230.7 billion won, representing a 149% increase from the previous quarter and a 126% increase year-over-year. This figure is 29% higher than the market consensus of 179.2 billion won. Operating profit for the solar business is estimated at 128.9 billion won, a 107% increase from the previous quarter.
Analyst Yoon explained, “We estimate that module prices rose by 9% this quarter, following a 14% increase in the previous quarter,” adding, “This is due to the widening premium for modules that meet the Non-FEOC (Foreign Enterprise of Concern) regulations.” He continued, “Sales volume is expected to remain similar to the previous quarter, so the Advanced Manufacturing Production Tax Credit (AMPC) is projected to be 213.6 billion won, comparable to the previous quarter,” adding, “Power generation and residential energy segments also showed slight improvements, contributing to the overall earnings growth.”
A significant improvement in performance was also expected for the Chemicals division. Analyst Yoon noted, “Operating profit for the Chemicals division is projected to reach 96.9 billion won, an 184% increase from the previous quarter,” analyzing that “this is due to rising prices following the Iran conflict and the success of an aggressive ethylene sourcing strategy. It is estimated that the division generated profits by selling at high prices to regions with supply shortages, as downstream operating rates exceeded 90%.”
However, he projected that consolidated operating profit would decline in the third quarter due to a performance adjustment in the Chemicals division. He also forecast third-quarter operating profit at 184.4 billion won, a 20% decrease from the previous quarter. In contrast, operating profit for the Solar division is estimated to reach 185.8 billion won, a 44% increase from the previous quarter.
Researcher Yoon stated, “With the Cartersville cell plant beginning full-scale operations in July, the company can now produce modules that meet the Domestic Component Addition (DCA) requirements, and further price increases are expected.” He added, “With the new 3.3 gigawatts (GW) of cell and wafer production capacity coming online, AMPC is also projected to increase by 11% quarter-over-quarter to 237.5 billion won.”
He continued, “Given the strong push for solar reshoring in the U.S. and the success in achieving vertical integration following the launch of the new Cartersville cell plant, it appears highly likely that the recently raised request for an investigation into circumvention of anti-dumping duties on Korean solar cells will be resolved without major issues.” He added, “The premium for vertically integrated modules that meet Non-FEOC regulations is also expected to expand further.”