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[EQUITIES] ‘Hanwha to outperform consensus, turn to black in Q3’

[THE INVESTOR] Hanwha Group will turn to black in the third quarter and post 152.1 billion won (US$135.14 million) controlling shareholder net income, according to Hana Financial Investment on Oct. 19. The securities firm maintained a “buy” recommendation and the target price of 46,000 won.

Hanwha’s operating profit in the third quarter will soar 422.8 percent to 535.2 billion won, remarkably higher than market consensus, said O Jin-won, an analyst at Hana, following “Hanwha Engineering and Construction’s return to profit and the maintained growth of Hanwha Chemical and Hanwha Techwin.”

Hanwha Group headquarters in downtown Seoul
Hanwha Group headquarters in downtown Seoul

“A friendly environment is being created for Hanwha Life Insurance, the largest public affiliate of the group, such as a rebound in yield spread,” said the analyst, while “Hanwha Chemical is expected to benefit from new renewable energy policies being mentioned in the US presidential campaign,” both adding momentum to the stock price of the whole group.

By Hwang You-mee (