[Click eStock] "Hanwha Aerospace, Sales and Profitability to Improve After Bottoming Out in Q1"

[Asia Economy Reporter Eunmo Koo] Hanwha Aerospace recorded solid first-quarter results despite deteriorating sales composition and increased marketing expenses. It is expected that sales growth and profitability will improve after bottoming out in the first quarter.

According to DB Financial Investment on the 13th, Hanwha Aerospace's consolidated sales for the first quarter of this year reached 1.0274 trillion KRW, a 7.6% increase compared to the same period last year, with an operating profit margin of 0.3%. Kim Hong-gyun, a researcher at DB Financial Investment, explained in a report on the day, "There was a recognition of 9.2 billion KRW in reversal due to winning a lawsuit related to forgery of performance certificates by a Hanwha Defense partner company, and the increase in sales compared to the same period last year included 52.3 billion KRW in sales reflected in the first quarter from the acquisition of the U.S. company HAU."

Quarterly performance is expected to continue improving after bottoming out in the first quarter. Researcher Kim said, "In the second quarter, HAU in the U.S., Hanwha Techwin, and Hanwha Precision Machinery are expected to see sales declines and profitability deterioration due to the impact of COVID-19, but the performance of other affiliates will remain solid," adding, "Hanwha Power Systems' custom compressor project ordered from Saudi Aramco will be recognized in sales from the second quarter, contributing to performance improvement."

Hanwha Aerospace shows clear quarterly seasonal performance, but the fundamental improvement trend is expected to continue in the medium term. Researcher Kim said, "Although the impact of COVID-19 has delayed some defense export projects, the order expectations remain valid," and "Both defense and civilian sectors are expected to continue growing on a large scale, and the profitability improvement story is expected to become clear in the second quarter."

This content was produced with the assistance of AI translation services.