As a large-scale capital increase is underway, Hanwha Aerospace, along with Hanwha Group stocks, is showing weakness.
As of 9:02 a.m. on the 21st, Hanwha Aerospace is trading at 627,000 won, down 13.30% from the previous day.
The previous day, Hanwha Aerospace announced a capital increase worth 3.6 trillion won. The company explained that two-thirds would be used to acquire securities from other companies, while the remaining one-third would be allocated to facility funds. Analysts predict investments in overseas defense (1.6 trillion won), domestic defense (900 billion won), overseas shipbuilding (800 billion won), and drone engines (300 billion won).
However, it seems that the investors' empathy has not been achieved. This is because the company could have pursued other funding methods, such as using its operating profit. Last year, Hanwha Aerospace's consolidated operating profit was 1.7 trillion won.
The market also appears to be considering the possibility of investment failure by Hanwha Aerospace. In 2019, Hanwha Aerospace and Hanwha System invested about 140 billion won in Overair, a U.S. company making urban air mobility (UAM) vehicles. However, Overair failed to obtain certification from the U.S. Federal Aviation Administration (FAA), resulting in a loss of the investment last year.
Hanwha Group stocks are overall down due to the large-scale capital increase by Hanwha Aerospace. Hanwha fell 10.42% from the previous day, while Hanwha System dropped 7.47%, Hanwha Engine 5.17%, and Hanwha Ocean 3.07%.
Meanwhile, Hanwha Aerospace announced that the new shares resulting from the capital increase will be listed on June 24. Currently, the Financial Supervisory Service (FSS) is reviewing the securities registration statement related to the company's capital increase. If the FSS does not request a correction to Hanwha Aerospace's securities registration statement by the 3rd of next month, the capital increase will proceed as planned.