Daishin Securities evaluated on the 16th that Hanwha Aerospace's export contract delivery will be fully underway, leading to an increase in profits this year. It also newly suggested investment opinions and target prices of "buy" and 430,000 won, respectively. The previous trading day's closing price was 311,500 won.

A view of the Hanwha Integrated Exhibition Hall participating in the International Aerospace Technology Expo (AEROTEC 2024) held in Changwon, Gyeongnam. /Courtesy of Hanwha Aerospace

Daishin Securities estimated Hanwha Aerospace's sales at 9.726 trillion won and operating profit at 1.321 trillion won for this year.

Lee Tae-hwan, a researcher at Daishin Securities, explained, "As delivery for the 1st batch of K9s (60 units) and Cheonmu (over 40 units) for Poland has commenced, this year's operating profit is expected to increase by 90% compared to last year." He added, "From next year, the sales and operating profit for the next three years are already secured by the overseas export contracts that have been awarded."

The researcher evaluated that Hanwha Aerospace can respond to all battlefield environments. He said, "Through the governance structure reorganization in September, we have established a business structure focused on aerospace and ground defense," adding, "As a consolidated listed subsidiary, there are Hanwha Systems and Satrec Initiative, and we hold equity in Hanwha Ocean, enabling us to respond across land, sea, air, and space."

Additionally, the researcher noted, "K9, which holds over 50% market share in the self-propelled artillery market, produces relatively high export margins compared to domestic defense companies based on a favorable contract competition environment." He added, "With a history of exports for K21 (infantry fighting vehicle), Cheonmu (multiple rocket launcher), and Cheongung (M-SAM) launchers, sustained growth in overseas contracts is possible."