Hanwha Aerospace is busy lowering its target price while conducting a large-scale capital increase, and a report has been posted that contradicts this. Hyundai Motor Securities noted that the value of Hanwha Aerospace's subsidiaries is on the rise. Consequently, it raised the target price from the previous 630,000 won to 779,000 won and presented an investment opinion of 'buy.' On the 24th, Hanwha Aerospace's closing price was 675,000 won.
On the 25th, Research Institute Kwang Min-jung from Hyundai Motor Securities said, 'The multiples of Australian overseas defense peer companies are continuing to rise,' adding, 'Considering the sharp increase in the equity value of Hanwha Ocean, we are raising the target price.' Recently, due to share purchases, Hanwha Aerospace's ownership stake in Hanwha Ocean increased from 34.7% to 42.01%.
Hyundai Motor Securities' move to raise its target price and present an investment opinion of 'buy' is different from other securities firms. The previous day, LS SECURITIES lowered its target price from 810,000 won to 730,000 won, stating that dilution of shareholder value is unavoidable due to a capital increase worth 3.6 trillion won.
DAOL Investment & Securities adjusted its target price down from 780,000 won to 700,000 won, while DS Investment & Securities adjusted it from 920,000 won to 750,000 won. Samsung Securities raised its target price from 640,000 won to 725,000 won, but changed its investment opinion from 'buy' to 'neutral.'
Hyundai Motor Securities did not mention Hanwha Aerospace's capital increase in its report. Research Institute Kwang noted, 'Due to recent geopolitical tensions, demand for K9 self-propelled artillery, Cheonmu multiple launch rockets, and Redback armored vehicles is increasing,' focusing on market analysis. He evaluated, 'There is an expectation that proactive investments in the European and Middle Eastern markets, which have strong localization requirements, will secure a competitive advantage in the long term.'
Hyundai Motor Securities forecasts that Hanwha Aerospace's first-quarter revenue will be 2.2968 trillion won, with an operating profit margin of 10.5%. Research Institute Kwang explained, 'European Union countries have increased collective defense spending by more than 30% from 2021 to 2024 in response to the threat of Russia's invasion of Ukraine.'
He added, 'Countries in Poland and the Baltic Sea, which have the memory of Soviet occupation and a land border with the Russian Federation, are spending more than the North Atlantic Treaty Organization (NATO) benchmark of 2% of their gross domestic product (GDP).'