[Edaily Reporter Park Sun-Yeop ] Hanwha Solutions ( HANWHA SOLUTIONS(009830)) is pursuing both financial restructuring and investment in next-generation solar technology through a 1.17 trillion won rights offering. Analysts have noted that for the company’s enterprise value to be fully revalued, it must first restore earnings through the full-scale operation of its U.S. solar production facilities and reduce its net debt.
In a report released on the 21st, Noh Woo-ho, an analyst at Meritz Securities, stated, “HANWHA SOLUTIONS has finalized the issue price for its rights offering at 22,100 won per share, raising a total of 1.17 trillion won,” adding, “The company plans to use these funds to normalize its current operations and secure a leading position in future technologies through capital expenditures and debt repayment.”

HANWHA SOLUTIONS will allocate 907.7 billion won of the funds raised through the rights offering to capital expenditures. The remaining 263.6 billion won is scheduled to be used for debt repayment. While the amount allocated to capital expenditures remains unchanged from the original plan, the funds earmarked for debt repayment have been reduced by 53% compared to the initial plan.
Financial burden remains a key factor affecting the company’s value. As of the end of the first quarter of this year, HANWHA SOLUTIONS’ net debt stood at 13.5 trillion won, with a debt-to-equity ratio of 191%. The company plans to reduce its net debt to 9.7 trillion won by the end of this year and to 7 trillion won by the end of 2030, while lowering its debt-to-equity ratio to 150% and 110%, respectively. Along with a rights offering, the company is also implementing self-rescue measures such as asset sales.
Analyst Noh believes that whether the “Solar Hub” established in Cartersville and Dalton, Georgia, operates at full capacity will determine the success of the company’s financial restructuring. He explained that the company must normalize its performance through increased production facility utilization rates and secure the U.S. Advanced Manufacturing Production Credit (AMPC) on a stable basis in order to reduce the ratio of EBITDA to net debt to an appropriate level.
Meritz Securities projected that the annual AMPC received by HANWHA SOLUTIONS will increase from 1.3 trillion won in 2027 to 1.7 trillion won in 2029.
The firm also forecast a recovery in earnings. Meritz Securities estimated HANWHA SOLUTIONS’ second-quarter revenue this year at 4.2323 trillion won, a 35.8% increase year-over-year, and operating profit at 225.6 billion won, a 121.0% increase. The operating profit forecast exceeds the market consensus of 180.4 billion won by 25%.
The capital raised through the rights offering will be used over the next three years to transition domestic and overseas solar production facilities to a next-generation tandem cell and module production system. Tandem solar technology involves stacking solar cells made of different materials to achieve higher power generation efficiency than conventional silicon solar cells.
The company is also expanding its business scope from the supply of solar modules for power generation to energy storage systems (ESS) and space infrastructure. HANWHA SOLUTIONS is establishing a business model that combines solar power generation with energy storage systems (ESS) to meet the growing power demand of U.S. artificial intelligence (AI) data centers. The company has signed an eight-year contract with Microsoft to supply a total of 12 gigawatts (GW) of solar modules and provide engineering, procurement, and construction (EPC) services, and has also secured a contract with Meta to supply modules for solar power plants and provide EPC services.
Researcher Noh stated, “Along with improving our financial structure through a rights offering, we are building a business portfolio that spans both the present and the future,” adding, “To achieve an appropriate upward revision in valuation, we must demonstrate a sustained reduction in net debt, the normalization of our U.S. solar business, and our leadership in future technologies.”