Hanwha Systems, 1Q Operating Profit Up 180%... "Cheongung PIP and AI Insurance Core Drive Performance"

[Asia Economy Reporter Suyeon Woo] Hanwha Systems announced on the 6th that its operating profit for the first quarter of this year surged 180% year-on-year to 30.7 billion KRW. Sales recorded a strong performance with approximately a 30% increase from the previous year to 366.7 billion KRW, and net profit also rose 148% to 23.8 billion KRW.

Hanwha Systems explained that sales growth was driven by increased revenue from the mass production project of the multifunction radar performance upgrade for the medium-range surface-to-air guided missile system (Cheongung-PIP) and the next-generation insurance core system project for AI-based automatic insurance screening. Existing core businesses such as the intelligent transportation system (ITS) for highways and the next-generation enterprise resource planning system (ERP) also recorded stable sales.

First sales were recorded in the multifunction radar (MFR) and combat management system (CMS) development projects for the Korean next-generation destroyer (KDDX), known as the "Korean Mini Aegis." Hanwha Systems secured the CMS and MFR development project for the KDDX, valued at 540 billion KRW, in September last year.

Hanwha Systems explained that operating profit expanded as new sales began to emerge evenly across defense and ICT sectors, including the JTDLS (Joint Tactical Data Link System) full-scale system development project and the Korea International Trade Association big data-based service provision project.

Meanwhile, sales in the surveillance and reconnaissance fields such as radar and electro-optics amounted to 115.1 billion KRW. Components developed by Hanwha Systems, including the active electronically scanned array radar (AESA), infrared search and track system (IRST), and electro-optical targeting pod (EO TGP)?key equipment of the Korean fighter jet KF-21, which was unveiled for the first time last month?generated sales. The aerospace sector, including the upgrade project for the Air Force fighter identification friend or foe (IFF) system, recorded sales of 44.3 billion KRW. Sales in the surveillance, reconnaissance, and aerospace sectors totaled 159.4 billion KRW, accounting for more than 43% of total first-quarter sales.

Kim Yeon-cheol, CEO of Hanwha Systems, said, “Although the surveillance, reconnaissance, and aerospace businesses are already generating operating profits, much larger-scale earnings are expected once full-scale activities begin.”

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