[Market Focus] Hanwha Solutions Plunges for Second Day on 2.4 Trillion Won Rights Offering

Hanwha Solutions is experiencing a sharp decline for the second consecutive day following the announcement of a large-scale rights offering.

As of 9:20 a.m. on March 27, Hanwha Solutions was trading at 34,200 won, down 2,600 won (7.07%) from the previous day. This follows a drop of more than 18% in the previous session, with the downward trend continuing today.

The large-scale rights offering has dragged down the share price. On March 26, Hanwha Solutions announced through a board resolution that it would issue 72 million new common shares through a rights offering. The offering will be conducted using a shareholder allocation with a public offering of forfeited shares, raising a total of 2.3976 trillion won. The funds raised are planned to be used for loan repayment and future growth investments.

Jinmyung Lee, an analyst at Shinhan Investment Corp., said, "Concerns over shareholder value dilution, future supply-demand pressures, and the need for additional financing due to the large-scale rights offering were reflected in the share price, which plunged 18% on the day of the announcement." He added, "While the move is positive in terms of technology internalization and long-term competitiveness, the large size of the funding is more focused on improving the financial structure than on future growth. In addition, the low visibility of space solar power and uncertainty over related benefits, as well as the possibility of further fundraising in the future, suggest that the upside momentum will be limited."

Seungjae Han, an analyst at DB Financial Investment, stated, "We are downgrading our investment rating to 'Hold' due to the heavy dilution burden stemming from the rights offering, which amounts to 41.9% of the total number of shares outstanding." He continued, "While expectations for a rebound in renewable energy performance are positive, a valuation burden will remain unless there is an improvement in market conditions sufficient to drive the annual operating profit estimate for 2026 above 707.4 billion won."

This content was produced with the assistance of AI translation services.