[Click eStock] "Hanwha Strengthens Growth Potential Through Portfolio Expansion... Target Price Up"

[Asia Economy Reporter Kwon Jae-hee] NH Investment & Securities on the 2nd issued a 'Buy' rating and a target price of 40,000 KRW for Hanwha.

Hanwha's consolidated results for the fourth quarter of last year showed sales of 13.904 trillion KRW and operating profit of 737.3 billion KRW, increasing by 1% and 541% respectively compared to the previous year. This significantly exceeded market expectations.

The separate operating profit (66.3 billion KRW) improved in profitability compared to the same period last year due to increased demand for machinery and equipment and the effect of business restructuring in the global division, despite the termination of some domestic defense projects. Consolidated operating profit showed strength due to the decrease in Hanwha Life's variable guarantee reserves and improved investment income, price increases following oil price rises at Hanwha Solutions, continued growth led by Hanwha Aerospace's civilian business, strong performance of listed subsidiaries, good results from financial affiliates, and consolidation adjustments related to the spin-off of financial affiliates (225.1 billion KRW).

Hanwha Construction saw an expanded loss due to reduced overseas sales and deferred pre-sale volume, but based on an increase in order backlog of 4.2 trillion KRW in 2021, it aims for sales of 4.5 trillion KRW in 2022 through expanded housing sales, large-scale complex development projects, and the start of eco-friendly projects.

Dongyang Kim, a researcher at NH Investment & Securities, analyzed, "Hanwha continues to show strong performance momentum with improved results from its own business, Hanwha Aerospace, Hanwha Solutions, Hanwha Life, and Hanwha Construction. By expanding its portfolio from the existing stable defense business to solar power, hydrogen, and aerospace, it is strengthening growth potential. This year, operating profit of non-financial consolidated subsidiaries is expected to grow by 1.3535 trillion KRW (13%)."

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