Hanwha Solutions shares have surged over 16% in early trading, buoyed by the participation of Kim Dong-kwan, vice chairman of Hanwha Group, in a capital increase and expectations of improved performance.
According to the Korea Exchange, as of 9:55 a.m. on August 5, Hanwha Solutions was trading at 31,300 won, up 4,500 won (16.79%) from the previous trading day. The company has seen gains for two consecutive days, following an 8.06% increase the day before.
Market analysts believe that news of Kim Dong-kwan's participation in the capital increase has boosted investor sentiment.
On August 3, Hanwha Solutions disclosed that Kim acquired 23,153 common shares in the capital increase for existing shareholders on July 31, at a price of 22,100 won per share, totaling 511.68 million won.
As a result, Kim's total shareholding increased from 81,400 shares to 104,553 shares, representing a 0.05% stake.
The largest shareholder, Hanwha, also increased its holdings by participating in the capital increase, raising its total to 80,357,854 shares, which corresponds to a 35.61% stake.
Initially, Hanwha Solutions announced a plan for a 2.4 trillion won capital increase but scaled it back to 1.2 trillion won due to opposition from shareholders, requests for corrections from the Financial Supervisory Service, and a decline in stock prices.
Analysts are focusing on the potential for improved performance based on the expansion of the solar business in the United States and new business momentum.
Hwang Seong-hyun, a researcher at Eugene Investment & Securities, stated, "Considering the start of operations at the Cartersville plant in June and the expected increase in sales in the second half, we believe the trend of improved performance will become more evident. Additionally, given the momentum in space solar power, the current stock price, which has fallen to the level of the capital increase issuance price, presents a buying opportunity."
* This article has been translated by AI.
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