Hanwha Solutions earns money from three businesses: renewable energy (Hanwha Qcells, making solar cells and modules, 2025 revenue about ₩6.9 trillion, in the 51% range), chemicals such as PVC and caustic soda (about ₩4.6 trillion, in the 34% range), and advanced materials (about ₩1.1 trillion, in the 8% range). Although classified under chemicals, solar is in fact its largest business, with a large share produced locally in Georgia, USA. It has decided on a rights offering of about ₩1.7 trillion to fund next-generation solar-cell investment and debt repayment, with subscription in July, and in Q1 2026 all business segments turned to the black. What stands out lately is a two-sided picture: strengths include the Q1 turnaround, Qcells' pricing competitiveness strengthened by US tariffs, and second-half mass production at the Cartersville cell plant and expanding AMPC as structural bases for profit improvement, while the cautions are the interest burden from a 241% debt ratio, the new shares from the rights offering, and the tie of solar profit to US policy.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 241.3%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 99.2%).
- The most recent full-year net result was a loss.
- Revenue rose 7.6% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 25.4% higher than a year earlier.
- ROE is -7.1% (controlling-interest basis). It is below the sector average.
- Operating margin is -2.7%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Hanwha 36.31% (corporate)
Controlling bloc incl. related parties 61.38%
With the controlling bloc holding 61%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Hanwha Solutions earns money mainly from three businesses.
- First, renewable energy (through its subsidiary Hanwha Qcells), which makes and sells solar cells and modules, with 2025 revenue of about ₩6.9 trillion — more than half of total revenue (in the 51% range).
- The US market share is especially large, with cell and module plants in Georgia producing locally for sale.
- Second, chemicals (petrochemicals), producing PVC (a plastic feedstock for pipes and building materials), caustic soda and wire-and-cable materials (W&C), with 2025 revenue of about ₩4.6 trillion (in the 34% range).
- Third, advanced materials, making solar materials and lightweight automotive composites, with revenue of about ₩1.1 trillion (in the 8% range).
- In short, the structure is "solar half of revenue, petrochemicals a third"; although classified under chemicals, solar is in fact its largest business.
- The latest close is ₩30,800 and market capitalization is ₩5.3 trillion.
- The price is below both its 20-day line (₩35,052) and its 60-day line (₩40,622).
- Trading below both the short- and medium-term moving averages, the trend is on the subdued side.
- The RSI (a supplementary gauge that compares upward and downward force over the past 14 days on a 0–100 scale) is 38.4, a neutral level.
- The one-month change is -15.8%, the three-month change is -17.1%, and the position versus the 52-week high is -47.3%.
- Relative strength versus the KOSPI is 32 (on a 1–99 scale, computed from returns against the index over the past year and weighted toward the recent period; higher means stronger than the market).
- This places it in roughly the top 68% of all stocks by strength.
- Over the past three months it lagged the index by 38.5%.
- Chart readings are best interpreted alongside trading volume and disclosure dates.
- Starting with the valuation metrics, the P/E ratio (how many times one year's net profit the share price represents) cannot be computed because of the 2025 net loss, while the P/B (how many times the company's net assets) is 0.58x, with the share price below book net assets (₩52,947 per share).
- The P/S (how many times revenue) is also low at 0.47x.
- On profitability, on a 2025 basis ROE (how much is earned in a year on equity) was -7.1% and the operating margin -2.7%, a loss, the result of a combination of weak petrochemical conditions and a correction phase in solar.
- On financial stability, the debt ratio (borrowings relative to equity) is somewhat high at 241.3% and the current ratio (assets convertible to cash against debt due within a year) is tight at 99.2%.
- Importantly, though, the 2025 loss-based metrics reflect a "trough now passed." Because results turned positive in Q1 2026, the P/E and ROE computed on last year's results cannot be taken to show this company's current strength as-is.
- Revenue moved between ₩10 trillion and ₩13 trillion over five years and edged up in 2025 to ₩13.3 trillion (+7.6%).
- The problem was profit.
- Operating profit fell from a ₩738.3 billion profit in 2021 and ₩966.2 billion in 2022 to ₩579.2 billion in 2023, then turned to losses in 2024–2025 (-₩364.8 billion in 2025), and net profit also posted large losses of -₩1.4 trillion in 2024 and -₩650.4 billion in 2025.
- But a clear inflection appeared in Q1 2026.
- With revenue of ₩3.882 trillion (+25.4% year on year) and operating profit of ₩92.6 billion (+205.5%), all three business segments turned to the black.
- In solar, as the US made preliminary determinations of high anti-dumping and countervailing duties on Southeast Asian solar products, Qcells' selling prices and competitiveness rose together on its local production base; in chemicals, an overseas turnaround in PVC and lower electricity costs for caustic soda produced a profit for the first time in about two and a half years.
- The basis for future profit is clear.
- On the company's official plan, 2026 solar module sales volume is to rise from 6 GW the prior year to 9 GW, the US Advanced Manufacturing Production Credit (AMPC) is expected to be recognized at about ₩950 billion a year, and from the third quarter the US Cartersville cell plant enters mass production, applying the tax credit across the value chain in the second half.
- In other words, on a trajectory where second-half earnings power is stronger than the first half, full-year profit is likely to form on the upside — above simply quadrupling Q1 results.
- The biggest event is a large rights offering.
- The company decided to issue new shares of about ₩1.7 trillion (the size adjusted through several amendments), and plans to split the proceeds between future growth investment such as next-generation solar cells (a perovskite tandem pilot and a TOPCon mass-production line) and debt repayment.
- The offering proceeds on a July subscription schedule.
- This carries the short-term burden of dilution of existing shareholders as the new share count grows, but at the same time has a strong medium-term character of improving fundamentals by repaying around ₩800 billion of debt to reduce the interest burden and completing US solar expansion.
- Beyond this, the Q1 2026 quarterly report (March close), a large-scale business-group status disclosure, a corporate governance report and a decision to guarantee debt for a third party were disclosed.
- In particular, the securities registration statement (equity securities) and the material-fact report (rights offering decision) are the central axes of the recent disclosures.
- The observation point is that "an inflection from loss to profit is actually under way." The Q1 2026 turnaround across all business segments, Qcells' pricing competitiveness strengthened by US anti-dumping duties, and second-half mass production at the Cartersville cell plant plus expanding AMPC are structural bases for profit to keep improving.
- The share price sits at a 0.68x P/B below net assets, so if results sustain a profitable tone it is on the suppressed side on the metrics.
- The cautions are also clear.
- The debt ratio is high at 241%, so interest costs have eaten into net profit (a small net loss persisted in Q1 despite the operating profit), and liquidity is tight.
- The new shares from the rights offering can weigh on the share price in the short term.
- In addition, a large part of solar profit is tied to US policy (tariffs and tax credits), so sensitivity to policy change is high.
- In sum, this is a stock where the margin of profit improvement widens if US solar demand and policy are favorable and chemical conditions keep recovering, while the pace of recovery can slow if policy retreats or the post-offering financial improvement is delayed.
🔎 Valuation vs peers Inconclusive
Domestic chemical and energy companies whose earnings inflection and materials character overlap, spanning petrochemicals and solar.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| LG Chem | 0.00x | 0.55x | -5.54% |
| Lotte Chemical | 0.00x | 0.21x | -16.19% |
| OCI Holdings | 0.00x | 0.87x | -2.29% |
Set alongside the domestic chemical peer set (Lotte Chemical at 0.22x, LG Chem at 0.6x), Hanwha Solutions' 0.68x P/B is within the sector-wide phase of low net-asset multiples. However, most of these posted losses in 2025, making a P/E comparison impossible, and with solar accounting for half of revenue Hanwha Solutions differs in character from a pure petrochemical peer set. In particular, the P/E on the 2025 net loss cannot even be computed, so one cannot conclude "cheap or expensive on last year's metrics." The key is the earnings inflection begun with the Q1 2026 turnaround, and with grounds for full-year profit to form on the upside from second-half US cell mass production and expanding AMPC, it should be viewed on a forward basis. Taking the sub-net-asset P/B and the return-to-profit trajectory together, it is on the suppressed side on the metrics, but with a high debt ratio, rights-offering dilution and sensitivity to US policy all present, remaining inconclusive is appropriate for now.
Price history Close · MA20 · MA60
The latest close is ₩30,800 and the market capitalization is ₩5.3 trillion. The price sits below its 20-day moving average (₩35,052) and below its 60-day moving average (₩40,622). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 38.4, a neutral level. The one-month change is -15.8%, the three-month change is -17.1%, and the position relative to the 52-week high is -47.3%. Relative strength versus the KOSPI is 32 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 32% of all stocks. Over the past three months it lagged the index by 38.5%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -38.45% / 6M -30.62% / 12M -63.74%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.58x is below the sector median (0.97x).
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 9.8%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is -7.1%, below the sector average (4.0%). The operating margin is -2.7%. The debt ratio is 241.3%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $8.7B | $8.2B | $8.8B | +7.58% ↑ faster |
| Operating profit | $383.9M | -$199.0M | -$241.8M | — |
| Net profit | -$93.5M | -$930.8M | -$431.1M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $7.1B | $9.0B | $8.7B | $8.2B | $8.8B |
| Operating profit | $489.4M | $640.4M | $383.9M | -$199.0M | -$241.8M |
| Net profit | $410.3M | $238.0M | -$93.5M | -$930.8M | -$431.1M |
| Revenue CAGR | 4-yr avg 5.59% | ||||
Revenue rose 7.6% year over year (2023 ₩13.1 trillion → 2024 ₩12.4 trillion → 2025 ₩13.3 trillion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating results are in the red, so a swing back to profit matters more than the growth rate here. Over the 5 years on record, revenue compound annual growth (CAGR) is 5.6%. The two-year revenue CAGR is 1.0%. In the most recent quarter (Q1 2026), revenue was 25.4% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- Debt is somewhat higher than equity (debt ratio 241.3%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 99.2%).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-26FilingRights offering of about ₩1.7 trillion (amended) decision — proceeds allocated to next-generation solar-cell (tandem/TOPCon) growth investment and debt repayment, subscription scheduled for JulyShort term: dilution burden from the new-share issuance. Medium term: financial and growth improvement through debt repayment reducing interest costs and completing US solar expansion. Source
- 2026-05-26FilingSecurities registration statement (equity securities) amendment filed — reflecting detailed issuance terms of the rights offeringShort term: the process of finalizing the offering terms. Share-price volatility may widen as the issue price and volume are set. Source
- 2026-05-14EarningsQ1 2026 quarterly report filed — revenue ₩3.882 trillion (+25.4% year on year), operating profit ₩92.6 billion (+205.5%), with all three business segments turning to the blackMedium term: officially confirms the earnings inflection from loss to profit. Solar and chemicals improving together. Source
- 2026-05-20FilingDecision to guarantee debt for a third party (amended) — a guarantee related to affiliates and subsidiariesMedium term: a character of intra-group funding support. A financial-burden factor from a contingent-liability standpoint. Source
- 2026-06-01FilingCorporate governance report disclosed — governance status such as the board and shareholder rights releasedMedium to long term: a regular disclosure on governance transparency. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-26Amended filing
- 2026-05-26Amended filing
- 2026-05-26Material-fact report (amended)
- 2026-05-22Disclosure
- 2026-05-20Amended filing
- 2026-05-19Amended filing
- 2026-05-14Amended filing
- 2026-05-14Amended filing
- 2026-05-14Material-fact report (amended)
- 2026-05-14PeriodicQuarterly report (amended)
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.