Yuanta Securities Korea predicted on the 23rd that Hanwha's share price would rise due to solid fundamentals and the increasing value of its subsidiaries. Consequently, it maintained a 'buy' rating, raising the target price from 63,000 won to 122,000 won, an increase of approximately 93.7%. In the previous transaction, Hanwha closed at 92,400 won.
According to Yuanta Securities Korea, Hanwha's consolidated revenue for the second quarter of this year is expected to be 17.9 trillion won, a 38.1% increase compared to the same period last year, while operating profit is forecasted to grow by 97.9% to 1 trillion won. Hanwha Aerospace, which is expected to drive this performance, is anticipated to achieve high growth in both revenue and profit thanks to the consolidation effect of Hanwha Ocean and ongoing deliveries of K-9 and Chunmu to Poland.
Lee Seung-woong, a researcher at Yuanta Securities Korea, projected that Hanwha's consolidated revenue for this year would reach 75.4 trillion won, a 35.6% increase from the same period last year, with operating profit expected to rise by 95.2% to 4.7 trillion won. He noted, 'This is due to the expected turnaround in profits from the construction institutional sector, in addition to the growth in subsidiary performance.' He explained that the growth of Hanwha Aerospace has already materialized, with confirmed expansions in export volumes of ground-based defense to Poland, and the consolidation of Hanwha Ocean and the Philippine shipyard is also contributing to growth.
The researcher stated, 'In the construction institutional sector, outstanding receivables related to the Iraq BNCP worth $300 million and payments from Inspire are expected to be reflected. The global sector is anticipated to contribute about 70 billion won in revenue this year due to the operation of the nitric acid plant in Yeosu,' adding, 'Additionally, an increase in brand royalties due to rising subsidiary revenues is also expected.'
He further added, 'Given the recent expectations for the resolution of discounts in the domestic stock market, the rising equity value of subsidiaries, and the profit growth of subsidiaries, additional share price re-rating is expected.'