[THE INVESTOR] Hanwha Chemical’s stock price has recently fallen disproportionately, said Kyobo Securities on Nov. 20, suggesting a “buy” recommendation.
Its stocks fell more than 20 percent since mid-September from the uncertainties over US safeguard measures against solar power and concerns over profit fall following the strong polysilicon prices and weak module prices, said analyst Son Yeong-ju.
Dragged down by the one-off costs including year-end performance awards and strong raw material prices, its operating profit in the fourth quarter will come in at 144.5 billion won, down 70.8 billion won from the previous quarter, estimated the analyst.
However, the chemical company remains strong as the top five in global solar energy sector and caustic soda prices maintain strength which will bolster earnings, pointed out Song, adding that its undervalued stock price is highly attractive.
By Hwang You-mee (firstname.lastname@example.org)