[THE INVESTOR] Concerns over Hanwha Chemical’s profit decline are growing, said Yuanta Securities on July 11, lowering the target price to 25,000 won (US$22.29) from 27,000 won.
Its second-quarter operating profit will decline 26 percent on-year to 162 billion won, sliding 6 percent from the previous quarter. Although basic materials and solar divisions will remain solid, loss from retail will cut into its operating profit slightly below market expectations. Since last month, caustic acid, toluene diisocyanate, solar cell module and polysilicon prices have been declining significantly fanning concerns for the third quarter as well, noted analyst Hwang Gyu-won.
Its operating profit in the latter half will come in at 202.2 billion won and although stock price has fallen to 0.5 times its price-to-book ratio, much more patience will be required, added the analyst.
By Hwang You-mee (email@example.com)