[Click eStock] "Hanwha Aerospace, Reflecting K9 and Cheonmu Export Performance... Target Price Up"

NH Investment & Securities on the 9th raised the target price for Hanwha Aerospace by 25%, from 120,000 KRW to 150,000 KRW.

Hanwha Aerospace signed a contract last November with Poland to supply a total of 288 launchers and over 20,000 missiles worth 5 trillion KRW. The launchers are estimated at 1 trillion KRW and the missiles at 4 trillion KRW. Unlike the detailed delivery schedule disclosed for the first contract of K9 (24 units in 2022, 24 units in 2023, 82 units in 2024, and 82 units in 2025), information disclosure is very limited due to the nature of the missiles. However, this order backlog worth 5 trillion KRW is expected to be reflected in the performance soon.

Additionally, with the development of the KTSSM-II, which has a range of 290 km, export competitiveness is expected to increase further. Hanwha Aerospace is currently developing the KTSSM-II by utilizing the rocket motor and guidance system of the KTSSM-I but replacing only the warhead with DPICM to extend the range to 290 km. The large order from Poland appears to have accelerated the development speed. Once the KTSSM-II development is completed, the export competitiveness of Cheonmu is expected to improve further. So far, Cheonmu is known to have been exported to the United Arab Emirates (UAE), Saudi Arabia, and Poland.

Lee Jaegwang, a researcher at NH Investment & Securities, stated, "We are revising upward the future earnings estimates by reflecting the performance of the Poland-bound K9 self-propelled howitzers and Cheonmu MLRS estimated through the fourth quarter of 2022 and the first quarter of 2023."

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