Hanwha Solutions (009830) Q4 2023 earnings summary

Executive summary

• FY23 revenue was KRW 132,887 hundred million, up 1.2% YoY; operating income fell 34.6% to KRW 6,045 hundred million, and net loss was KRW 1,553 hundred million.

• Q4 revenue rose 32.3% QoQ to KRW 38,697 hundred million, while operating income declined 58.6% to KRW 407 hundred million and net loss reached KRW 3,302 hundred million.

Financial highlights

• FY23 EBITDA was KRW 12,727 hundred million, down 16.6% YoY; EBITDA margin was 9.6%, down 2.0 percentage points.

• Q4 EBITDA was KRW 2,193 hundred million, down 18.2% QoQ and 32.3% YoY; EBITDA margin was 5.7%, down 3.5 points QoQ.

• FY23 pretax loss was KRW 1,020 hundred million versus pretax income of KRW 5,494 hundred million in FY22; net income moved from KRW 3,660 hundred million to a KRW 1,553 hundred million loss.

Outlook and guidance

• Q1 renewable energy operating result expected to turn negative as module shipments and selling prices decline; advanced materials operating income expected to improve with lower raw material prices.

• Q1 chemicals operating loss expected to continue amid geopolitical shipping risks, higher costs, and weak demand; major equity-method affiliates may decline as prior-quarter one-offs fade, despite spread improvement expectations.

• 2024 chemical markets: gradual second-half improvement expected for LDPE, caustic soda, PVC, and TDI, supported by easing supply pressure or demand recovery; supply growth and weak demand remain headwinds.