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The Korea Herald
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THE INVESTOR
March 28, 2024

Stocks & Bonds

[EQUITIES] ‘Hanwha Chemical’s solar biz in slump’

  • PUBLISHED :February 24, 2017 - 17:36
  • UPDATED :February 24, 2017 - 17:45
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[THE INVESTOR] Hanwha Chemical’s solar business will continue to deteriorate, said KB Investment and Securities on Feb. 24, lowering the target price to 37,000 won (US$32.67) from 40,000 won. 





Its fourth-quarter earnings did improve on-year but failed to meet the market expectations, said analyst Baek Yeong-chan. Basic materials in the chemical division gained from the improved margin of PVC and the price hike of caustic soda and TDI lifted operating profit while other business sectors, including solar, incurred a 400 billion won operating loss, said the analyst. 

Although its first quarter earnings will increase, solar sector will remain slow, according to Baek, adding that solar business will make profit but operating profit will shrink from the previous year to 16.7 billion won.

Cape Investment and Securities agreed that the solar sector has dented the chemical company’s earnings in the fourth quarter. 

The decline in the solar sector, however, will be offset by the increase in profit from chemical department, said analyst Lee Ji-yeon, maintaining a “buy” recommendation and 37,000 won target price. 

By Hwang You-mee (glamazon@heraldcorp.com)

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