1、 Disclosures&Disclaimer This report must be read with the disclosures and the analyst certifications in the Disclosure appendix,and with the Disclaimer,which forms part of it.Issuer of report:The Hongkong and Shanghai Banking Corporation Limited View HSBC Global Investment Research at:https:/ Click

2、toviewHesitantbullsofsummer|The20theditionoftheEMSentimentSurvey 2Q25 results below our expectation on weaker earnings contribution from EnFin Unexpected production problems to dent 3Q module shipments,leading to solar guidance downgrades Maintain Buy and lower our TP to KRW42k(from KRW46k)2Q25a und

3、erwhelmed:Hanwha Solutions(HSC)posted 2Q25 operating profit(OP)of KRW102bn from revenue of KRW3,117bn.Both quarterly revenue and OP massively missed our expectations and Bloomberg consensus,mainly owing to weaker profit contribution from EnFin(US residential solar business).EnFin reported OP of KRW5

4、5bn(-57%q-o-q)with below-OP valuation losses of KRW58bn(-33%).In spite of EnFins earnings volatility and uncertainty,the company did not provide EnFins operational details,outlook,or guidance at the analyst briefing(30 July),given lingering policy uncertainty,which particularly disappointed,in our v

5、iew.3Q25 solar guidance turning sour At the briefing,HSC guided that the renewable segment would turn unprofitable with an estimated operating loss in the low KRW100bn due to tighter module margins and weaker module shipment outlook.The company looks to have particularly suffered from unexpected pro

6、duction troubles at its cell production facilities in Korea and Malaysia,keeping module shipments flat q-o-q in 3Q25,which significantly cut 45X tax credit collection opportunity.The production issues,however,have already been resolved;therefore,module shipments should recover starting from Septembe