Hanwha Corp. stocks fell by 7.85% driven by disastrous second-quarter financials, with revenue falling off by 10.53% and operating profits dropping by 77.71%, YoY.
While its weapons and energy businesses remained relatively solid, Hanwha’s financial subsidiaries – including its life division, Hanwha Life – suffered from earnings shocks.
"The group's financial units posted an operating profit of 154.2 billion won for the second quarter, down 82.6 percent from the previous quarter's 885.5 billion won," Daishin Securities analyst Yang Ji-hwan said in a report from The Korea Times. Yang also lowered the group’s stock price target by 22.5% because of the abysmal results.
Hanwha Life fell 47.41% in its sales for Q2, resulting in a 59.36% decline YoY in the division’s operating profits. Quarter-on-quarter, the figures looked even worse, as its Q2 profits were 84% smaller.
"Our previous year's earnings were based on the International Financial Reporting Standard (IFRS) 4, so it is impossible to compare our latest performance directly with the previous year's," Hanwha Life said in its regulatory filing.
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