Hanwha Aerospace reported record highs thanks to its 'surprise performance.'
Hanwha Aerospace shares traded at 467,500 won on the Korea Composite Stock Price Index (KOSPI) at 9:18 a.m. on the 11th, an increase of 13.2% (54,500 won) from the previous day. During the early trading, the stock price surged to 489,500 won, marking a record high. It appears that the performance exceeded expectations and stimulated investor sentiment.
Hanwha Aerospace disclosed its performance for the fourth quarter of last year (October to December) after the market closed the previous day. On a consolidated basis, sales amounted to 4.8311 trillion won, and operating profit recorded 892.5 billion won, exceeding market expectations by 33% for sales and 68% for operating profit. The increase in weapons exports to Poland, favorable exchange rates, and profit maximization through repeat production are believed to have driven performance.
Particularly, on a standalone basis, Hanwha Aerospace's annual sales showed that exports reached 4.4 trillion won and domestic sales were 4 trillion won, marking the first time that export scale surpassed that of domestic sales. It is expected that production volumes in the domestic market and exports will increase this year as well, leading to growth in the ground defense institutional sector.
The restructuring of governance is also accelerating. Hanwha Aerospace announced a contract to acquire 22.37 million shares (7.3% stake) of Hanwha Ocean, held by its affiliates, for 1.3 trillion won. Hanwha Aerospace stated that it would enhance synergy and strengthen responsible management based on the expanded stake in Hanwha Ocean.
Hanwha Aerospace also decided to invest 22.5 billion won in Hanwha Aviation, its 100% subsidiary. Hanwha Aviation focuses on aircraft engine leasing platforms.