DAISHIN SECURITIES assessed that the value of Hanwha's subsidiaries has increased. It raised its target stock price from the previous 52,000 won to 60,000 won and recommended an investment opinion of 'buy.' On the 10th, Hanwha's closing price was 52,300 won.
On the 11th, Yang Ji-hwan, a DAISHIN SECURITIES research analyst, explained, "The increase in Hanwha's target stock price reflects the increase in net worth (NAV) due to the rising stock prices of its subsidiaries, including Hanwha Aerospace, Hanwha Vision, and Hanwha Solutions."
The equity value of Hanwha's listed subsidiaries is approximately 14.2 trillion won. Among this, the equity value of Hanwha Aerospace alone exceeds 10 trillion won. In other words, the fluctuation in Hanwha Aerospace's stock price significantly impacts Hanwha's NAV.
In the past month, Hanwha has risen 57%, and one reason cited by DAISHIN SECURITIES is the possibility of amending the Commercial Act. Currently, a bill is being discussed in the National Assembly to extend the duty of loyalty from existing companies to shareholders. It is expected to be reintroduced in the plenary session on the 13th. If passed in the National Assembly, the President must promulgate it within 15 days.
Yang noted, "The strengthening of the duty of loyalty of directors to shareholders, if the Commercial Act amendment passes, is being highlighted." He added, "Companies expected to use unlisted companies for inheritance and governance restructuring are being mentioned as candidates," and emphasized that "the anticipation of rapid changes in Hanwha Group's governance and succession structure could be a factor."
Meanwhile, Hanwha Energy has expanded its Hanwha stake to 22.2% through a public offering and acquisition of equity held by Korea Zinc. The purpose of Hanwha Energy's acquisition of Hanwha equity is to strengthen responsible management as a major shareholder and to enhance shareholder value.
In this context, Yang analyzed, "The three brothers Kim Dong-kwan, Kim Dong-won, and Kim Dong-sun hold 100% of the equity, increasing expectations for succession and governance restructuring through a merger with Hanwha." He also noted that the combined ownership stake of the three brothers in Hanwha is only about 9.2%, which adds to this possibility.
Yang added, "Hanwha Energy (including the Singapore corporation) is increasing market expectations for additional equity purchases by securing approximately 410 billion won in cash liquidity through the sale of Hanwha Ocean equity."