KOSPIChemicals009830

Hanwha Solutions

₩36,100▲ 5.40%2026-10-02 close

Market Cap

₩8.1T

Turnover

₩193.2B

Volume

5.4M

Shares out.

220M

PER

—

PBR

0.5×

EPS

-₩973

Dividend Yield

0.00%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close

Report overview

US Solar Hub Ramp Meets Balance-Sheet Strain

Second-quarter 2026 revenue of KRW 4.58tn and operating profit of KRW 306.5bn marked a sharp step-up in quarterly earnings, yet the accumulated losses of 2024-2025 and a balance sheet weighed down by equity issuance and debt sit alongside that recovery.

1
Q2 2026 consolidated revenue was KRW 4.58tn, operating profit KRW 306.5bn and net profit attributable to owners KRW 283.5bn, a marked improvement in quarterly earnings (confirmed figures).
2
On an annual basis the company posted operating losses of KRW 300.2bn in 2024 and KRW 364.8bn in 2025, two consecutive loss years, with 2025 operating cash flow also negative.
3
Completion of the Cartersville cell line in Georgia finished the ingot-wafer-cell-module vertical chain, changing the structure of tax-credit receipts.
4
Against a 196.3% debt-to-equity ratio at end-2025, the company combined a rights offering, RCPS issuance and monetisation of tax credits, while dilution from the larger share count remains a separate factor.
5
Korean petrochemicals remain in restructuring amid oversupply, and participation in the Yeosu reorganisation is reshaping the chemicals division.

Business structure

Hanwha Solutions is organised into a renewable energy (Q CELLS) division centred on solar, a chemicals division focused on commodity petrochemicals, an advanced materials division covering solar and automotive materials, and an Insight division handling industrial-complex and property development.

For Q2 2026, media reports based on the 29 July 2026 disclosure showed renewable energy revenue of KRW 2.48tn with operating profit of KRW 166.4bn, and chemicals revenue of KRW 1.47tn with operating profit of KRW 87.1bn, alongside advanced materials revenue of KRW 300.3bn and operating profit of KRW 28.8bn.

More than half of group revenue comes from the renewable energy division, so earnings are effectively driven by the US solar business.

The Q CELLS division has widened beyond module manufacturing into power-plant development and asset sales, engineering-procurement-construction (EPC) and residential energy; the company says EPC work completed or under way in North America exceeds 11GW of solar and 6GWh of storage (July 2026 reporting).

On market position, Wood Mackenzie data cited in the press put its 2025 US residential module share at 38.5% and commercial share at 15.5%, ranking first for eight and seven consecutive years respectively.

The chemicals division rests on basic materials where the company holds high domestic shares in LDPE, PVC and caustic soda, tying results directly to commodity prices and feedstock spreads.

Advanced materials centres on solar materials and lightweight composites, with North American solar materials recently supporting margins. The Insight division is shifting from industrial-site development toward a broader portfolio including data centres as it diversifies revenue sources.

Competition is twofold: Chinese module majors and US-based manufacturers in solar, and domestic, Middle Eastern and Chinese commodity capacity in chemicals.

Earnings trend

Quarterly revenue · Operating profit

₩3.1T₩102.1B25Q2₩3.4T-₩7.4B25Q3₩3.8T-₩489.7B25Q4₩3.9T₩92.6B26Q1₩4.6T₩306.5B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩13.7T₩966.2B2022₩13.3T₩604.5B2023₩12.4T-₩300.2B2024₩13.3T-₩364.8B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩3.1T	₩102.1B	3.3%
2025Q3	₩3.4T	-₩7.4B	−0.2%
2025Q4	₩3.8T	-₩489.7B	−13.0%
2026Q1	₩3.9T	₩92.6B	2.4%
2026Q2	₩4.6T	₩306.5B	6.7%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩13.7T	₩966.2B	₩359.1B	7.1%	4.0%	140.8%
2023	₩13.3T	₩604.5B	-₩208.1B	4.5%	−2.7%	171.8%
2024	₩12.4T	-₩300.2B	-₩1.4T	−2.4%	−14.9%	183.2%
2025	₩13.3T	-₩364.8B	-₩650.4B	−2.7%	−7.1%	196.3%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04

Earnings analysis

The annual record shows a clear downswing followed by a turn.

Revenue moved within a KRW 12-13tn band - KRW 13.65tn in 2022, KRW 13.29tn in 2023, KRW 12.39tn in 2024 and KRW 13.33tn in 2025 - but operating profit fell from KRW 966.2bn in 2022 (7.1% margin) and KRW 604.5bn in 2023 (4.5%) to losses of KRW 300.2bn in 2024 and KRW 364.8bn in 2025.

Net profit attributable to owners was worse than the operating line at minus KRW 208.1bn in 2023, minus KRW 1,404.4bn in 2024 and minus KRW 650.4bn in 2025, implying accumulated non-operating burdens such as financing costs and equity-method or asset-related items.

Operating cash flow of KRW 518.0bn in 2023 and KRW 638.5bn in 2024 swung to minus KRW 655.0bn in 2025, consistent with the debt-to-equity ratio rising from 140.8% in 2022 to 196.3% in 2025.

Quarterly, the trough came with an operating loss of KRW 7.4bn in Q3 2025 and KRW 489.7bn in Q4 2025, followed by operating profit of KRW 92.6bn in Q1 2026 and KRW 306.5bn in Q2 2026.

Q2 2026 in particular delivered the largest quarterly top line in the series at KRW 4.58tn, with net profit attributable to owners of KRW 283.5bn.

Management attributed the improvement to higher module selling prices, development asset sales and a stable revenue base in residential energy, and said chemicals kept a profitable footing by securing ethylene and other feedstock on time.

Items such as development asset sales, however, are timing-dependent and should be weighed when reading the trend. Summing the latest four quarters (Q3 2025 to Q2 2026) still leaves a net loss of KRW 169.7bn attributable to owners, so a full-year return to profit remains to be confirmed.

Industry analysis

Solar manufacturing margins have been squeezed for years by Chinese oversupply and falling module prices, and Korean manufacturers have been caught between cost competitiveness and declining market prices.

The United States, by contrast, has pursued policies to reduce reliance on Chinese product and build local manufacturing, and the advanced manufacturing production credit of 4 cents per watt on cells and 7 cents per watt on modules made in the US shapes the economics of local producers.

On demand, commentary points to structurally rising power consumption from AI data centres and semiconductor clusters, with solar emerging as a corporate renewable procurement route. That demand increasingly takes the form of combined solar-plus-storage power solutions rather than standalone panels.

The chemicals cycle, on the other side, remains weak. The Korea Chamber of Commerce and Industry classified petrochemicals as the only sector out of eleven in the "very difficult" category in its second-half 2026 industry outlook.

Government and industry are pushing restructuring in response, and one analysis noted that combined naphtha cracker shutdowns of 1.10mn tonnes at Daesan and 1.39mn tonnes at Yeosu reach 2.49mn tonnes, or 67-92% of the government target of 2.7-3.7mn tonnes (Shinhan Securities, July 2026).

Hanwha Solutions is part of this: with Lotte Chemical, Yeochun NCC and DL Chemical it obtained Ministry of Trade, Industry and Energy approval for the Yeosu project restructuring plan in July 2026, with the new integrated entity and antitrust clearance still pending.

Outlook

The most direct variable is the ramp of the US production chain. Hanwha Q CELLS completed its Cartersville plant in Georgia in June 2026, establishing an ingot-wafer-cell-module system inside the United States, with US capacity cited at 3.3GW each for ingots, wafers and cells and 8.6GW for modules.

On tax credits, the company guided to USD 675mn of AMPC receipts in 2026, rising to USD 879mn in 2027 when all lines run fully, USD 929mn in 2028 and USD 1.1bn in 2029.

For the third quarter, CFO Lee Jae-bin projected higher residential energy revenue and solid renewable energy results as the Cartersville value chain runs at full pace, while also flagging that chemicals profitability would fall versus the second quarter on negative lagging effects (29 July 2026).

On funding, the rights offering issued 53mn shares to raise KRW 1,171.7bn, allocated as KRW 907.7bn for facilities and KRW 263.6bn for debt repayment, with new shares scheduled to list on 11 August 2026.

This was accompanied by a KRW 300bn RCPS issue through the Q CELLS US EPC entity and additional monetisation of USD 220.3mn of tax credits.

In new businesses, a pilot line at the Jincheon plant supports a 2029 commercialisation target for tandem cells, and the company said it signed a contract with Hanwha Systems on 15 July 2026 to develop satellite solar cells, beginning work on space solar technology.

On projects, EPC work on the Atlas Energy Park in Arizona and the completed sale of two solar plants totalling 357MW were disclosed in July 2026.

Valuation

PER

—

PBR

0.5×

ROE

-1.8%

EPS

-₩973

BPS

₩55,649

Dividend per share

₩0

Because the sum of the last four quarters is still a net loss attributable to owners, earnings-based multiples cannot be calculated, leaving book-value-based comparison as effectively the only available reference.

That book-based multiple sits below one time, meaning the share price stands beneath reported shareholders' equity.

It should be read together with the fact that this equity base reflects both capital added by the rights offering and the accumulated losses of 2024-2025, and that the share count has increased through the new issue. There have been no recent dividend payments, so a dividend-yield comparison does not apply.

Market views differ: Hana Securities analyst Yoon Jae-sung cut the target price to KRW 46,000 from KRW 65,000 in a report dated 17 April 2026. For earnings-based metrics to regain meaning, the first thing to verify is whether the quarterly profits carry through to a full-year result.

PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04

Bull factors

Completed US vertical integration and policy support

The company and industry describe the Q CELLS Solar Hub as the only US production base covering the full solar chain from ingot through wafer, cell and module.

That structure enables additional tax credits on cells and wafers, and securing US-made cells is regarded as a key requirement under the investment tax credit's domestic content bonus for qualifying projects. The benefit can therefore show up in pricing premiums as well as cost. The scale of that benefit, however, depends on US policy remaining in place.

Turn in quarterly earnings direction

From an operating loss of KRW 489.7bn in Q4 2025, the company posted operating profit of KRW 92.6bn in Q1 2026 and KRW 306.5bn in Q2 2026, two consecutive profitable quarters. Net profit attributable to owners also turned positive at KRW 283.5bn in Q2 2026.

The company said all three divisions - renewable energy, chemicals and advanced materials - stayed in the black. Simultaneous profitability across divisions can be read as a sign of reduced dependence on any single segment.

Power demand growth and business-model extension

The company said it plans to expand an integrated renewable business combining solar and storage across the United States in response to rising power demand from AI data centres. In practice, EPC work at Arizona's Atlas Energy Park and the completed sale of two plants totalling 357MW were disclosed in July 2026.

Spreading revenue across development, EPC and asset sales alongside module sales can partly offset swings in manufacturing prices. Development gains, though, vary widely by quarter depending on project timing.

Bear factors

Accumulated losses and elevated leverage

Net profit attributable to owners was negative for three straight years: minus KRW 208.1bn in 2023, minus KRW 1,404.4bn in 2024 and minus KRW 650.4bn in 2025. The debt-to-equity ratio climbed step by step from 140.8% in 2022 to 171.8% in 2023, 183.2% in 2024 and 196.3% in 2025.

Operating cash flow of minus KRW 655.0bn in 2025 shows cash was not flowing in at the operating level. Two profitable quarters alone do not resolve that accumulated burden.

Dilution from capital raising

The rights offering issued 53mn new shares to raise KRW 1,171.7bn. The plan had originally been set at KRW 2.4tn and was revised three times after correction demands from the Financial Supervisory Service before being fixed at around KRW 1.7tn.

In addition, RCPS carry both redemption rights at maturity and conversion rights into common shares, which can create further dilution depending on terms. A larger share count affects per-share metrics across the board.

Structural weakness in chemicals

Large capacity additions in China and the Middle East have intensified commodity price competition and kept ethylene spreads from recovering, while falling oil prices add negative lagging effects as products made from costlier feedstock are sold at lower prices.

The company itself guided to lower chemicals profitability in the third quarter than in the second. Separately, analysts noted that continued Chinese capacity additions and geopolitical risk make near-term normalisation of petrochemical conditions unlikely. With chemicals contributing a meaningful share of revenue, this weakness continues to weigh on group earnings.

Risk factors

Policy and regulation

US solar economics are tightly linked to the advanced manufacturing production credit and the investment tax credit. The company's guided receipts, from USD 675mn in 2026 to USD 1.1bn in 2029, assume the current framework stays in place. Changes to eligibility, scope or duration would alter the earnings contribution. Tariff and customs measures have also affected results in the past.

Financial and liquidity

A 196.3% debt-to-equity ratio at end-2025 and 2025 operating cash flow of minus KRW 655.0bn point to greater reliance on external funding. The company also secured liquidity by monetising USD 373.7mn of tax credits received last year ahead of schedule, effectively pulling forward future receipts.

Such monetisation raises cash now but consumes inflows from later periods. Funding costs may shift with interest rates and credit standing.

Execution of business restructuring

The Yeosu restructuring received Ministry of Trade, Industry and Energy approval in July 2026, but the new integrated entity and antitrust clearance remain outstanding. Delays or conditions may arise during approval and integration.

Affiliate-related funding calls also cannot be ruled out, as seen when DL Chemical and Hanwha Solutions each decided to lend KRW 150bn during Yeochun NCC's funding crunch in August 2025. Whether restructuring translates into actual cost improvement takes time to verify.

What to watch next

Late October 2026
Q3 2026 results. It is the first quarter with a full contribution from Cartersville cell production, and it will show how much of the negative lagging burden in chemicals that management flagged actually materialises.
October 2026
The 2026 National Assembly audit is expected to review the results and effectiveness of petrochemical restructuring. The specifics of financial and tax support and the pace of capacity reduction affect assumptions for the chemicals division.
Q4 2026
Progress on establishing the new integrated entity for the Yeosu project and the antitrust review. Approval timing and conditions will determine when the chemicals division's asset and cost structure actually changes.
January-February 2027
Confirmation of full-year 2026 results and disclosure of actual tax credits received. This is when the gap between guided 2026 AMPC and recognised amounts, and whether the full year turned profitable, can be checked.
First half of 2027
Deployment of the KRW 907.7bn of facility funds from the rights offering and progress on tandem and TOPCon investment. Whether the money goes into next-generation cell lines as planned is a leading indicator for the 2029 commercialisation target.

Overall view

Hanwha Solutions can be summarised as a company that has passed through a period of annual losses and seen quarterly earnings turn.

After operating losses of KRW 300.2bn in 2024 and KRW 364.8bn in 2025, it posted operating profit of KRW 92.6bn in Q1 2026 and KRW 306.5bn in Q2 2026, with net profit attributable to owners of KRW 283.5bn in the second quarter.

The axis of that improvement is US solar: completion of the Cartersville plant gives it 3.3GW each of ingot, wafer and cell capacity plus 8.6GW of modules in the United States, and the associated tax-credit structure is the key swing factor.

On the other side sit a 196.3% debt-to-equity ratio at end-2025, operating cash flow of minus KRW 655.0bn in 2025, and dilution from the issuance of 53mn new shares.

Chemicals has entered restructuring, but the sector itself is still classified as being in a very difficult phase, and management has guided to lower third-quarter profitability there.

What needs verifying is whether the profit generated by the US production system persists on an annual basis once seasonality and project-sale timing are stripped out, and whether cash generation follows at a level sufficient to carry the enlarged capital and debt. This material is for information purposes only and contains no buy or sell recommendation.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.