Hana Securities forecasted on the 16th that Hanwha Aerospace will continue to export weapon systems not only to Poland but also to Southeast Asia and India. Hana Securities maintained a 'buy' investment opinion on Hanwha Aerospace and raised the target price from 440,000 won to 560,000 won. This is the highest target price among domestic securities firms, representing a 41.7% increase over Hanwha Aerospace's previous closing price of 395,000 won.
Research Institute Wi Kyung-jae evaluated that the performance of Hanwha Aerospace's institutional sector in ground arms was likely to be robust. Even conservatively estimating the amount for Poland and India last year, it was projected that the K9 self-propelled guns of 65 units and 48 Chunmu multiple launch rocket systems exceeded the outlook at the beginning of the year.
The researcher noted, "In addition to the exports to Poland currently driving performance, multiple weapon systems are expected to contribute to future performance growth," adding that "the possibility of a decrease in order volume is limited."
The researcher mentioned, "There is potential for additional orders in the process of promoting local production in Poland, and it seems that interest in the Southeast Asia region is rising," and added, "There is an expectation of increased demand for weapon systems in the Asian region, including India, which previously contracted for K9 self-propelled guns."
He continued, "The fact that Chunmu is attractive in terms of price and delivery time compared to the U.S. High Mobility Artillery Rocket System (HIMARS) increases the possibility of contracts," and said, "If the situation between China and Taiwan does not stabilize, demand for Chunmu could arrive sooner than expected."
The researcher also cited that the rising value of Hanwha Systems and Hanwha Ocean's equity held by Hanwha Aerospace is a factor that enhances corporate value. He stated, "Considering the target prices for Hanwha Systems and Hanwha Ocean, the values based on equity holdings are 3.1 trillion won and 1.7 trillion won, respectively," and added, "Considering the performance growth of the equity-holding affiliates, a target price of 560,000 won is deemed appropriate."