Hanwha Solutions: Losses Narrow but Persist as Shares Rebound and a Rights Offering Is Disclosed

Thesis

The data supports a picture of a large chemicals-sector company in a multi-year earnings downturn that is improving but not yet profitable. Trailing 12-month operating margin is -0.6%, versus -2.7% in 2025, and net loss is ₩169.7B versus ₩650.4B in 2025. The share price has risen 22.3% over one year and 15.8% over one month, yet it remains well below the 52-week high of ₩59,300 and above the low of ₩22,000. What the data does not show is a return to profit. Free cash flow is negative at ₩1.07T, borrowings are large, and a rights offering was disclosed. Investor flows, foreign ownership, short balance and news headlines are not available, so sentiment cannot be assessed from those sources.

Business overview

Hanwha Solutions is listed on KOSPI in the Chemicals sector, was founded in 1974 and listed the same year. It has 171,892,536 listed shares and a market cap of ₩5.9T. Enterprise value is ₩10.3T. Co-CEOs named in the data are 박승덕, 남정운 and 김동관. Revenue was ₩10.7T in 2021, rose to ₩13.7T in 2022, and was ₩13.3T in 2025. Trailing 12-month revenue to H1 2026 is ₩15.6T. The data does not break revenue down by business segment.

Financial analysis

All figures come from filed financial statements (DART). Revenue grew 27.3% in 2022, then fell 2.7% in 2023 and 6.7% in 2024, before rising 7.6% in 2025 to ₩13.3T. Operating income was ₩966.2B in 2022 (7.1% margin) and ₩604.5B in 2023 (4.5%), then turned negative: -₩300.2B in 2024 (-2.4%) and -₩364.8B in 2025 (-2.7%). Net income was ₩359.1B in 2022, then negative every year since, with the largest loss of ₩1.40T in 2024. Trailing 12 months to H1 2026: operating loss of ₩98.0B (-0.6% margin), net loss of ₩169.7B (-1.1% margin) and ROE of -1.8%, against -16.2% in 2024 and -7.0% in 2025. Liabilities to equity is 183.7%. Cash is ₩2.69T against borrowings of ₩7.03T. Free cash flow is -₩1.07T.

Valuation

Price-to-book is 0.6 now, after a year-end 2025 reading of 0.5. Price-to-sales is 0.4 and dividend yield is 0.8%. P/E and EV/EBITDA are not available because earnings are negative or not reported. Year-end P/B is available only for 2025, so a longer comparison with its own history cannot be made. Among peers, LG Chem has a P/B of 0.5 and Hanwha 0.6 (P/E 10.3). KCC, SKC and Soulbrain have no multiples in the data. LG Chem's market cap is ₩18.4T, about three times that of Hanwha Solutions.

Catalysts

• The rights offering (paid-in capital increase) decision filed on 2026-09-30 could affect the share count and balance sheet once details and pricing are finalized.
• Investor relations events were filed on 2026-09-10 and 2026-10-07, which may bring further company commentary.
• A 5%+ holding report on 2026-10-02 and insider shareholding reports on 2026-08-28 and 2026-10-07 show ongoing changes in ownership.
• Filings on sales of shares in another company (2026-09-08, amended 2026-09-16) may relate to asset disposals, though the data gives no amounts.
• The next financial statements will show whether the narrowing operating loss in the trailing figures continues.

Risks

• Net losses in each year from 2023 to 2025 and in the trailing period show earnings have not yet recovered.
• Free cash flow of -₩1.07T alongside ₩7.03T of borrowings leaves the company reliant on financing.
• Liabilities to equity of 183.7% indicates substantial leverage.
• A rights offering may dilute existing shareholders, and its terms are not in the data.
• An amended serious accident filing on 2026-09-09 and a debt guarantee decision on 2026-09-08 are flagged, with no details available; investor flow and short interest data are also missing.

Closing view

The filed numbers show a company whose losses are shrinking but which is still unprofitable, with negative free cash flow and heavy borrowings. The share price has recovered recently and the book multiple is below 1, but valuation signals are limited because earnings-based multiples are unavailable. The rights offering is the key item to follow, since its terms are not in the data. Missing flow, ownership and news information means this view rests mainly on financial statements and filings.

Model estimate of fair value

The valuation model has no estimate for this company yet (not enough data, or no positive value with the base case).

Report history

1. Oct 13, 2026InitiationHanwha Solutions: Losses Narrow but Persist as Shares Rebound and a Rights Offering Is Disclosed