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[Alpha Biz=(Chicago) Reporter Paul Lee] DB Financial Investment has raised its target price for Hanwha Solution, saying it expects growth in the renewable sector this year
DB Financial Investment raised the target price of Hanwha Solution from 41,000 won to 45,000 won on the 23rd, and maintained its 'buy' opinion. Although operating profit in the fourth quarter of last year does not meet market expectations, it is predicted that renewable energy performance will rebound this year.
DB Financial Investment predicts that Hanwha Solution's operating profit in renewable energy will increase this year. This is because module facilities expanded in the U.S. are in full operation. As a result, this year's operating profit estimate is 1.1 trillion won, of which operating profit in the renewable energy sector is 982.7 billion won.
"Annual shipments, which stayed at the 8GW-8.3GW (Gigawatt) level from 2020 to last year, will rise in earnest from this year," DB Financial Investment said. "The prospect that the price of solar products will not fall any further is also good for Hanwha solution."
"Although the backlapping effect of raw materials due to falling solar and battery prices is adversely affecting the industry, the profitability of Hanwha Solution will improve first among competitors," DB Financial Investment said. "With a long-term contract with Microsoft, performance is expected to grow stably after next year."
DB Financial Investment predicted Hanwha Solution's operating profit in the fourth quarter of last year to be 131.7 billion won, down 22% from a year earlier.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
