After the announcement of a large-scale capital increase, Hanwha Aerospace is on an upward trend.
As of 9:29 a.m. on the 24th, Hanwha Aerospace is trading at 659,000 won, up 4.94% from the previous day.
On the 20th, Hanwha Aerospace announced a capital increase worth 3.6 trillion won. The reason was that they plan to invest 1.6 trillion won in overseas defense, 900 billion won in domestic defense, 800 billion won in overseas shipbuilding, and 300 billion won in unmanned aircraft engines.
Market reaction was cold. This is because Hanwha Aerospace is not a company that is short on cash, and its operating performance is decent, yet it chose a capital increase.
As a result, the stock price fell 13.02% the day after the announcement of the capital increase. During the trading session, it dropped by more than 15%.
It is interpreted that the stock price rose on this day as demand to buy Hanwha Aerospace at a lower price increased. However, there are still evaluations in the securities industry that Hanwha Aerospace's choice is regrettable.
Choi Jeong-hwan, a researcher at LS Securities, noted, “It is very disappointing that funding was raised through a capital increase rather than other methods such as internal cash flow and liquidating current assets or procuring bonds.” He added, “The uncertainty regarding whether the funds raised through this capital increase will lead to actual results has also not been resolved.”