[Click eStock] "Hanwha Aerospace, Long-term Growth Expected Based on Orders... Target Price Up"

Daol Investment & Securities raised the target price for Hanwha Aerospace from 140,000 KRW to 155,000 KRW on the 11th.

Hanwha Aerospace recently signed a second export contract worth approximately 3.45 trillion KRW with the Polish Military Procurement Office for K9 self-propelled howitzers. Mass production is scheduled to begin around September 2026, when the first phase ends, and continue until the end of 2031. Additionally, the company signed a supply contract with Australia worth about 3.16 trillion KRW for the infantry fighting vehicle (IFV) Redback. The contract period extends until 2033, with full-scale production expected to start in 2026.

Daol Investment & Securities revised upward Hanwha Aerospace’s operating profit forecasts for 2024 to 2026 by reflecting these two export contracts as well as domestic orders received in the fourth quarter for 30mm wheeled anti-aircraft guns and 120mm self-propelled mortars. Furthermore, follow-up orders for K9, Chunmoo, and ammunition are anticipated from Romania, the United Kingdom, and other countries.

Choi Kwang-sik, a researcher at Daol Investment & Securities, said, "Although the market reacted to the order news as another 'short-term sell-on,' the profit momentum generated by these volumes will be more important for the medium- to long-term stock price." He added, "With this contract, Hanwha Aerospace’s export backlog will extend to nearly 10 years, continuing a long growth phase."

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