Hanwha Solutions, which jumped more than 27% the previous day on expectations for Elon Musk's space-based solar power and a recovery in the solar sector, is plunging more than 6% on the 20th. The drop appears to reflect brokerage analyses saying that "confirmation of additional drivers for gains is needed."
As of 9:51 a.m. on the 20th, Hanwha Solutions was trading at 54,800 won on the Korea Exchange, down 3,700 won (6.32%) from the previous session. At the same time, Hanwha Solutions preferred shares were also plunging.
The previous day, Hanwha Solutions surged more than 27.45% on expectations for a space solar power business, but sentiment cooled somewhat after brokerages said the current share price is excessive versus fair value.
Jun Yoo-jin, an iM Securities analyst, said, "Based on the previous day's close, Hanwha Solutions' EV/EBITDA is 16 times, a higher level than U.S. company First Solar (7.7 times) and JinkoSolar (10.5 times), which Elon Musk's side is said to have contacted for space-based solar power generation," noting "there is valuation pressure."
The analyst added, "With the tentative detailed plan on foreign entities of concern (FEOC) announced, there is now a possibility of improved pricing power and increased sales volume in the United States," but said it is necessary to confirm whether the U.S. module glut is actually entering a decline phase, whether the commercial operation of the Cartersville plant leads to higher utilization and improved profitability, and whether additional sanctions translate into supply-reduction effects.