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K9 self-propelled howitzers. (photo = Hanwha Aerospace) |
[Alpha Biz= Reporter Kim Jisun] Hanwha Aerospace posted an earnings surprise in the second quarter, exceeding market estimates by nearly 70%. This result is attributed to the improved performance in the defense sector, driven by the prolonged Russia-Ukraine war and other conflicts.
Hanwha Aerospace announced on the 30th that its sales for the second quarter reached 2.786 trillion KRW, a 46.0% increase compared to the same period last year. Operating profit soared by 356.5% to 358.8 billion KRW, marking the highest quarterly performance in the company's history. This figure surpassed the market estimate of 215.2 billion KRW by 66.7%.
Analysts in the defense industry attribute this growth to the surge in defense exports due to the prolonged conflicts involving Russia, Ukraine, and Israel. Eastern European countries bordering Ukraine have actively purchased Hanwha Aerospace's weapons. Since 2022, Poland has agreed to import K-2 tanks, K-9 self-propelled howitzers, and Chunmoo multiple rocket launchers from Hanwha Aerospace. It is reported that deliveries of Chunmoo and K-9 self-propelled howitzers in the second quarter contributed significantly to these results.
The outlook for the second half of the year is also positive. In June, Hanwha Aerospace signed an export contract worth approximately 1.4 trillion KRW with Romania, including K-9 self-propelled howitzers and K-10 ammunition resupply vehicles. The total value of new orders in the first half of the year is 3.6 trillion KRW, with some of these orders expected to be delivered in the second half.
The aviation business also contributed to the improved performance. With the resurgence in aviation demand post-COVID-19, exports of engine parts have increased.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
