NH Investment & Securities projected on the 29th that Hanwha Solutions would see a significant improvement in operating profit next year. The investment opinion remains "buy," but the target stock price has been lowered by 16% to 38,000 won. Hanwha Solutions' previous closing price was 28,450 won.
Researcher Choi Young-kwang at NH Investment & Securities explained that the lowering of the target stock price was due to "the delayed timing of the rebound in U.S. module prices and increased expenses during the process of restructuring the supply chain with non-Chinese materials and supplies, leading to a downward revision of the operating profit forecast for 2026 by 10%."
NH Investment & Securities estimated that Hanwha Solutions would achieve a turnaround this year with an operating profit of 178.3 billion won. The operating profit for next year is projected to increase by 482% year-on-year to 1.0374 trillion won.
Researcher Choi stated, "Hanwha Solutions plans to begin mass production at the only integrated value chain facility in the U.S., located in Cartersville, during the fourth quarter and will fully commence sales from the first quarter of 2026," adding that "with the expansion of production and sales, the amounts received from the Advanced Manufacturing Production Credit (AMPC) are also expected to increase."
It was expected that the demand for modules produced at that facility would remain robust as the trend of de-China and increasing demand for U.S. products strengthens further.
The demand for solar power in the U.S. is expected to continue its long-term strength due to the increasing demand for electricity and concentrated installation demand ahead of the Investment Tax Credit (ITC) expiry.
Researcher Choi explained, "While short-term supply burdens have expanded due to a recent surge in exports to the U.S. from Indonesia and Laos, preliminary determinations on antidumping (AD) and countervailing duty (CVD) tariffs are expected to be announced to those countries by the end of this year," adding that "imports will likely decrease again in the U.S. next year and that production volumes domestically will also decline with the implementation of FEOC regulations, thereby gradually alleviating supply burdens."