[Click eStock] “Hanwha Aerospace, Clear Improvement in Civil Sector Performance”

Daishin Securities "Hanwha Aerospace Target Price Raised from 53,000 KRW to 64,000 KRW"
Defense Sector Weakness... Positive Outlook Expected from Second Half

[Asia Economy Reporter Gong Byung-sun] Hanwha Aerospace showed a clear improvement in performance in the civilian sector. Domestic demand in the defense sector is expected to increase from the second half of the year.

On the 2nd, Daishin Securities forecast that Hanwha Aerospace's sales would increase by 13% year-on-year to 1.3482 trillion KRW, and operating profit would rise by 27% to 89.4 billion KRW. The operating profit exceeds the market consensus by 13%.

Performance improved in the civilian sector. Operating profit in the Techwin division is expected to increase by 16.3 billion KRW, and the Precision Machinery division by 28.2 billion KRW compared to the previous year. The Techwin division continued strong B2B sales of closed-circuit television (CCTV) to North American companies. Additionally, the regulatory restrictions on Chinese companies provided a positive spillover effect. The Precision Machinery division saw a sharp increase in sales due to the activation of domestic demand in China. The robotics business reduced costs following the transfer to Hanwha Corporation.

Although exports in the defense sector were sluggish, positive factors are expected from the second half of the year. The defense sector was selected for the AUD 5 trillion Land 400 project in Australia next year. Lee Dong-heon, a researcher at Daishin Securities, explained, “From the second half of the year, domestic demand in the defense sector is expected to increase.”

Accordingly, Daishin Securities maintained a ‘Buy’ investment rating on Hanwha Aerospace but raised the target price from 53,000 KRW to 64,000 KRW. The closing price the previous day was 47,150 KRW. The researcher said, “With the acquisition of Satrec Initiative, Hanwha Group will play a key role in the space industry,” adding, “Momentum related to the space business is also continuously expanding.”

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