[Click eStock] "Hanwha Aero Demonstrates Differentiated Profitability in Overseas Exports"

On November 4, Daishin Securities raised its target price for Hanwha Aerospace from 1.2 million won to 1.28 million won, citing the company’s diverse order portfolio in Eastern Europe and the Middle East, as well as its demonstrated differentiated profitability in overseas exports. The investment opinion was maintained as 'Buy'.

For the third quarter, Hanwha Aerospace reported consolidated revenue of approximately 6.5 trillion won (up 264.2% year-on-year) and operating profit of 856.4 billion won (up 96.4%), with preliminary results meeting market expectations. The ground defense division recorded an operating profit of 572.6 billion won (up 30%), while the aerospace division posted an operating profit of 3.1 billion won, turning to profit.

Lee Taehwan, a researcher at Daishin Securities, stated, "Deliveries to Poland decreased significantly to 18 K9 units and 9 Cheonmu units, compared to the previous quarter’s deliveries of 18 K9 units and 27 Cheonmu units. However, sales in other regions such as Egypt and Australia increased, and sales of maintenance items, including guided weapons, also rose." He added, "Profitability from non-Polish sales appears similar to that of Polish sales, so if overall sales continue to grow, we expect profits to rise sharply as well."

With local plant construction in Poland and Romania expected to begin soon, additional order intake based on these facilities is also anticipated. Lee commented, "The plan is to maintain a backlog equivalent to four to five years in the long term," adding, "With delivery schedules set for Egypt K9 in 2026 and Australia Redback in 2027, we expect uninterrupted revenue growth."

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