Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Capital Markets

Hanwha Solutions / Equity Capital Markets

<ul>
<li>On 17 April, Hanwha Solutions (009830 KS) announced that it will reduce the rights offering capital raise amount to 1.8 trillion won, down from 2.4 trillion won previously.</li>
<li>This includes newly issued shares of 56 million (down from 72 million previously) and expected offering price of 32,400 won per share (down from 33,300 won per share previously).</li>
<li>I continue to have a Negative View of this capital raise/Hanwha Solutions mainly due to excessive dilution concerns of existing shareholders. The company has poor balance sheet and high valuations.</li>
</ul>


On 17 April, Hanwha Solutions (009830 KS) announced that it will reduce the rights offering capital raise amount to 1.8 trillion won, down from 2.4 trillion won previously.
This includes newly issued shares of 56 million (down from 72 million previously) and expected offering price of 32,400 won per share (down from 33,300 won per share previously).
I continue to have a Negative View of this capital raise/Hanwha Solutions mainly due to excessive dilution concerns of existing shareholders. The company has poor balance sheet and high valuations.


Hanwha Solutions: Reduces Rights Offering Capital Raise to 1.8 Trillion Won

<ul>
<li>On 25 March, Hanwha Solutions (market cap of 6.3 trillion won) announced that it plans to conduct a rights offering capital raise of nearly 2.4 trillion won (US$1.6 billion).</li>
<li>I have a Negative View of this rights offering capital raise mainly due to excessive dilution concerns of existing shareholders. In addition, the company has poor balance sheet. </li>
<li>The company's core solar and chemical businesses are experiencing tough competition and its profitability (operating margin) worsened in 2025. Valuations are also not cheap (EV/EBITDA of 20.1x). </li>
</ul>


On 25 March, Hanwha Solutions (market cap of 6.3 trillion won) announced that it plans to conduct a rights offering capital raise of nearly 2.4 trillion won (US$1.6 billion).
I have a Negative View of this rights offering capital raise mainly due to excessive dilution concerns of existing shareholders. In addition, the company has poor balance sheet. 
The company's core solar and chemical businesses are experiencing tough competition and its profitability (operating margin) worsened in 2025. Valuations are also not cheap (EV/EBITDA of 20.1x). 


Hanwha Solutions: Rights Offering Capital Raise of 2.4 Trillion Won

Pan-Asia Tactical Market Calls (Quant-Driven), MRM Research

Nico Rosti

Pan-Asia Tactical Market Calls (Quant-Driven)

MRM Research

Quantitative Research

Equity Derivatives

<ul>
<li>On 25 March, <a href="https://www.smartkarma.com/entities/hanwha-solutions" target="_blank" data-smartkarma-citation="entities:8656:1" rel="noopener">Hanwha Solutions (009830 KS)</a> announced plans to conduct a rights offering capital raise of nearly 2.4 trillion won (US$1.6 billion). The stock tanked 30% last week.</li>
<li>
<a href="https://www.smartkarma.com/profiles/douglas-kim" target="_blank" data-smartkarma-citation="accounts:342" rel="noopener">Douglas Kim</a> suggested the expected rights offering price is 33,300 won, 9.5% lower than the closing price on 26 March.</li>
<li>Price crashed the P75 downside band, signaling extreme selling velocity toward the 31,350 support (our model's MAX drawdown for this pattern). The move currently tracks as an oversold tail-risk event.
</li>
</ul>


On 25 March, Hanwha Solutions (009830 KS) announced plans to conduct a rights offering capital raise of nearly 2.4 trillion won (US$1.6 billion). The stock tanked 30% last week.

Douglas Kim suggested the expected rights offering price is 33,300 won, 9.5% lower than the closing price on 26 March.
Price crashed the P75 downside band, signaling extreme selling velocity toward the 31,350 support (our model's MAX drawdown for this pattern). The move currently tracks as an oversold tail-risk event.



Hanwha Solutions (009830 KS) Tactical Outlook Following the Rights Offering 'Crash'

Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

<ul>
<li>Deal size is the key swing factor: KRW 2.1tn rights offering, 20% discount, 0.335 allocation ratio. Even with Hanwha Corp 120% take-up, KRW 1.2tn still hits the market.</li>
<li>Tighter 1st-to-2nd pricing gap reduces discount volatility, setting up a cleaner rights arb, but Hanwha Solutions’ thin SSF liquidity means short hedges will need a creative approach.</li>
<li>FSS is reviewing the deal over use of proceeds, but with Hanwha Corp pre-signaling full oversub, regulatory risk looks low and unlikely to block the rights offering.</li>
</ul>


Deal size is the key swing factor: KRW 2.1tn rights offering, 20% discount, 0.335 allocation ratio. Even with Hanwha Corp 120% take-up, KRW 1.2tn still hits the market.
Tighter 1st-to-2nd pricing gap reduces discount volatility, setting up a cleaner rights arb, but Hanwha Solutions’ thin SSF liquidity means short hedges will need a creative approach.
FSS is reviewing the deal over use of proceeds, but with Hanwha Corp pre-signaling full oversub, regulatory risk looks low and unlikely to block the rights offering.


Structural Features of Hanwha Solutions Rights Offering

External broker reports(aggregated public sources), Mirae Asset Securities

Mirae Asset Securities

External broker reports(aggregated public sources)

Mirae Asset Securities Co.,Ltd. provides comprehensive wealth management services. The Company offers fixed income securities brokerage, securities dealing, equity underwriting, and other services. Mirae Asset Securities also deals with mergers and acquisitions, foreign currency, and financial derivatives

Equity Bottom-Up

<ul><li>We maintain our Buy rating on Hanwha Solutions but lower our target price to W35,000 (from W38,000), reflecting: 1) a weak 4Q25 earnings outlook due to stricter US customs inspections; and 2) delays in the ramp-up of US cell production.</li><li>Amid import bottlenecks for cells (intermediate goods), the key question now is how quickly the company can normalize utilization at its US module operations.</li><li>However, we expect this issue to be resolved before prohibited foreign entity (PFE) rules go into effect in 2026.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We maintain our Buy rating on Hanwha Solutions but lower our target price to W35,000 (from W38,000), reflecting: 1) a weak 4Q25 earnings outlook due to stricter US customs inspections; and 2) delays in the ramp-up of US cell production.Amid import bottlenecks for cells (intermediate goods), the key question now is how quickly the company can normalize utilization at its US module operations.However, we expect this issue to be resolved before prohibited foreign entity (PFE) rules go into effect in 2026.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Hanwha Solutions (009830 KS/Buy)Guidance Lowered Amid a Wave of Setbacks

South Korea

Hanwha Solution Corporation is a chemical manufacturer.  The Company's products include a line of chlorine alkali chemicals, such as caustic soda, chlorine, and hydrochloric acid.  Hanwha also produces resins including low density polyethylene (LDPE) and polyvinyl chloride (PVC).

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Hanwha Solutions (009830 KS)

Hanwha Solutions: Reduces Rights Offering Capital Raise to 1.8 Trillion Won

On 17 April, Hanwha Solutions (009830 KS) announced that it will reduce the rights offering capital raise amount to 1.8 trillion won, down from 2.4...

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Hanwha Solutions: Rights Offering Capital Raise of 2.4 Trillion Won

FSS put the brakes on Hanwha Solutions' planned 2.4 trillion won paid-in capital increase. The FSS demanded that Hanwha Solutions submit an amended...

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