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Hanwha KPS posts Q2 earnings shock; recovery expected in H2
🇰🇷 South Korea /Economy & Trade

Hanwha KPS posts Q2 earnings shock; recovery expected in H2

From Chosun Ilbo · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

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  • Hanwha Solutions' subsidiary Hanwha KPS reported significantly lower-than-expected earnings for the second quarter.
  • Analysts predict a recovery in the second half of the year, driven by planned maintenance for nuclear and thermal power plants.
  • Eugene Investment & Securities lowered its target price for Hanwha KPS but maintained a 'buy' recommendation.

Hanwha KPS experienced an "earnings shock" in the second quarter, significantly missing market expectations, according to Eugene Investment & Securities. The company's performance fell short of projections, raising concerns among investors.

Despite the disappointing second-quarter results, analysts anticipate a recovery in Hanwha KPS's financial performance during the latter half of the year. This optimism is based on the expected increase in planned preventive maintenance work for both nuclear and thermal power plants. These projects are crucial for the company's revenue stream.

In light of the recent performance, Hwang Sung-hyun, an analyst at Eugene Investment & Securities, adjusted the target price for Hanwha KPS downward by 18% to 55,000 won. However, the firm maintained its 'buy' investment rating, suggesting confidence in the company's long-term prospects and its ability to rebound in the coming months.

DistantNews Editorial

Originally published by Chosun Ilbo in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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