Hanwha Solutions is experiencing strong early trading gains following news of Kim Dong-kwan's participation in a capital increase.
As of 9:49 a.m. on August 4, the Korea Exchange reported that Hanwha Solutions shares rose by 2,150 won (8.67%) to 26,950 won. The stock even reached 27,650 won at one point during early trading.
The announcement of Kim's participation in the capital increase has boosted investor sentiment. Typically, capital increases can negatively impact stock prices due to concerns over share dilution. However, Kim's involvement is being interpreted as a sign of the company's commitment to long-term growth, which has helped lift the stock price.
In a disclosure, Hanwha Solutions revealed that Kim acquired 23,153 common shares through the capital increase on July 31. His total shareholding has increased from 81,400 shares to 104,553 shares. The largest shareholder, Hanwha, also saw its holdings rise to 80,357,854 shares, representing a 35.61% stake.
The company's improved performance is also supporting its stock price. On July 29, Hanwha Solutions announced that its consolidated revenue for the second quarter reached 4.5826 trillion won, with an operating profit of 306.5 billion won. This marks a 47.0% increase in revenue and a 200.3% increase in operating profit compared to the same period last year. The quarterly operating profit of over 300 billion won is the highest since the third quarter of 2022.
Notably, the renewable energy sector led the performance improvement, reporting revenue of 2.4823 trillion won and an operating profit of 166.4 billion won, driven by rising module sales prices and increased asset sales. The chemicals sector also achieved a profit for the second consecutive quarter, with revenue of 1.465 trillion won and an operating profit of 87.1 billion won, supported by rising product prices and stabilized raw material procurement.
Analysts are optimistic that Hanwha Solutions will continue to improve its performance in the second half of the year. Baek Young-chan, a researcher at Sangsangin Securities, stated, "The issues surrounding the capital increase in the first half have largely been resolved, and we expect significant performance improvements in the second half due to the full commercialization of the solar power plant in Cartersville, Georgia."
He added, "Additionally, the upcoming announcement of the U.S. Trade Expansion Act (Section 232) this month is expected to provide further momentum for the North American solar business, and the recent stock price adjustment presents a buying opportunity."
* This article has been translated by AI.
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