Daishin Securities Co. on the 4th said Hanwha Systems is set to become a key investment stock under the MASGA (Make America Shipbuilding Great Again) project. With Korea's nuclear-powered submarine construction approved, Hanwha Systems, which owns the Philly Shipyard, could benefit. Accordingly, the target price was raised to 71,000 won, and the investment opinion was maintained at "buy."
On a consolidation basis, Hanwha Systems' third-quarter revenue was 807.7 billion won and operating profit was 22.5 billion won on a preliminary basis. Revenue rose 26.4% from a year earlier, but operating profit plunged 60.5%. In the defense institutional sector, it posted revenue of 481.4 billion won and operating profit of 49.8 billion won, with an operating margin above 10%. In the ICT institutional sector, with Hanwha Aerospace's ERP project ending, revenue came to 155.7 billion won and operating profit to 12 billion won, showing some contraction.
The sharp drop in third-quarter operating profit is attributed to increased initial investment-related expense for the Philly Shipyard. Previously omitted cost items were reflected, and expense was投入 for shipyard normalization. Expense related to the Philly Shipyard is expected to continue to be reflected for the time being, and the timing of a turnaround into the black is uncertain.
However, with Korea's nuclear-powered submarine construction approved, the Philly Shipyard's potential is coming into focus. Nuclear-powered submarine construction still requires preconditions such as the Philly Shipyard obtaining a defense license and facility investment, making immediate push difficult, but the analysis is that it will benefit along with the MASGA project.
Lee Taehwan, a researcher at Daishin Securities Co., said, "Hanwha Systems holds 60% equity in the Philly Shipyard, which has been designated as the shipyard for nuclear-powered submarine construction," and noted, "The immediate expense is regrettable, but the potential is sufficient."