[Edaily Reporter kyoungeun kim ] SKSecurities announced on the 16th that it is maintaining its “Buy” rating on Hanwha(000880)—whose combined market capitalization has increased following a spin-off—and raising its target price to 170,000 won from the previous level.
The firm forecasts that expectations for business portfolio optimization and more efficient resource allocation following the spin-off and relisting will lead to a narrowing of the discount relative to net asset value (NAV).

Choi Kwan-soon, an analyst at SKSecurities, stated in a report released that day, “If additional shareholder returns become tangible following the spin-off, this is a point in time where we can expect the normalization of the significantly higher discount rate compared to competitors.”
On January 14, Hanwha decided to carry out a spin-off between the surviving entity, Hanwha, and the newly established entity, Hanwha Machinery & Service Holdings, at a ratio of 0.756 to 0.244. The surviving entity includes Aerospace (Ocean), Solutions, and HANWHA LIFE INSURANCE, while the newly established entity includes Hanwha Vision, Galleria, and Hotel & Resort (Ourhome).
Prior to the trading suspension for the spin-off, the market capitalization was 5.9 trillion won; following the relisting after the spin-off, the combined market capitalization as of the previous day reached 7.9 trillion won (7.3 trillion won for the surviving entity + 600 billion won for the newly established entity), marking a 33.9% increase.
The rise in combined market capitalization is interpreted as reflecting expectations for the optimization of the business portfolio and more efficient allocation of resources. Currently, the discount rate relative to the surviving entity’s NAV stands at 65.3%, a slight decrease from the 66.1% calculated based on pre-split figures.
Hanwha’s performance is also expected to improve this year. Based on its export competitiveness—including the signing of a 410 million euro export contract for Cheonmu systems with Croatia—HANWHA AEROSPACE’s projected operating profit for 2026 is 4.3 trillion won, a 39.7% year-over-year (YoY) increase.
HANWHA SOLUTIONS is expected to return to profitability with an estimated operating profit of 800 billion won. This outlook is driven by the potential for increased demand for renewable energy following the U.S. midterm elections and the commencement of operations at its U.S. solar panel factory after a rights offering. Additionally, regarding the Bismayah project in Iraq—where construction resumption has been delayed—the likelihood of resuming work is rising, as evidenced by a recent meeting with the chairman of the Iraqi Investment Commission.
In addition, the firm expects the company’s internal cash flow—including trademark royalties and dividend income—to improve due to better performance at its subsidiaries. Accordingly, SKSecurities projected that Hanwha will post consolidated revenue of 9.4 trillion won (+25.2%) and operating profit of 6.7 trillion won (+62.0%) this year.