 |
Photo = Hanwha Aerospace |
[Alpha Biz= Kim Jisun] Daol Investment Securities announced on Thursday that it has raised its target price for Hanwha Aerospace from 500,000 KRW to 700,000 KRW, maintaining its “Buy” rating.
This adjustment reflects the improved performance of Hanwha Aerospace's land defense sector and the increased stake in Hanwha Ocean. The stock closed at 520,000 KRW the previous day.
Daol Investment noted that Hanwha Aerospace's fourth-quarter revenue rose 56% year-on-year to 4.831 trillion KRW, while its operating profit surged 222% to 892.5 billion KRW, marking two consecutive "super surprises" in performance. The strong growth was driven by land defense sales and operating profit, with export sales accounting for 55% of total revenue and export margins in the high 30% range.
The firm also highlighted that Hanwha Aerospace had acquired an additional 7.3% stake in Hanwha Ocean from Hanwha Impact and other entities, increasing its ownership to 30.44%. With the consolidation of Hanwha Ocean’s performance starting in 2025, Daol Investment expects Hanwha Aerospace's revenue to reach 25 trillion KRW and operating profit to reach 2.45 trillion KRW.
Moreover, Daol Investment pointed out that the most significant impact would be on Hanwha Aerospace’s share of net income, which will increase from 23% to 42% following the larger stake in Hanwha Ocean.
The firm praised Hanwha Aerospace's portfolio, which includes stable and promising contracts for systems like K9, Cheonmu, KTSSM-2, 155mm shells, Redback, M-SAM radar, and L-SAM, noting that the company is well-positioned to secure further contracts with minimal volatility. It added that there are no concerns about an export slump for the time being.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
