SK Securities assessed that Hanwha is expected to see significant performance improvements starting in the second half of this year, and although its stock price has risen rapidly, it remains undervalued. The investment opinion is 'buy' and the target price has been raised to 115,000 won. Hanwha's closing price on the previous trading day was 95,800 won.
SK Securities predicted that Hanwha will achieve significant performance improvement starting in the second half of this year. Researcher Choi Kwan-soo noted, 'With major subsidiaries expected to see increased sales leading to expanded brand loyalty and potential improvements in separate revenue due to better construction sector cost rates, this serves as a long-term shareholder return factor.'
Additionally, annual operating profit improvements for key subsidiaries such as Hanwha Aerospace and Hanwha Solutions are also expected.
Hanwha's stock price has risen 256.1% compared to the beginning of the year, recording the highest stock price increase among major holding companies.
Researcher Choi analyzed that 'The rise in Hanwha's stock price can be attributed to the increase in the stock prices of subsidiaries, improvements in its own business performance, and expectations for reevaluation (re-rating) of holding company stock prices due to amendments to the Commercial Code,' adding that 'With a reduction in sector discount rates expected post-amendment, market interest in Hanwha, which has strong valuation attractiveness, is likely to expand.'
He went on to say, 'Despite the rapid rise in Hanwha's stock price in a short period, the current stock price remains undervalued at a price-to-book ratio (PBR) of 0.8 times and a discount rate of 56.9% compared to NAV,' stating that 'With expectations for re-rating regarding the amendments to the Commercial Code, there is a high possibility of further stock price increases centered around holding companies with strong valuation attractiveness.'