Heungkuk Metaltech Securities said on the 16th that it would raise its target price for Hanwha, reflecting the rise in subsidiary equity value and the cancellation of treasury shares. It maintained a Buy rating and raised the target price to 185,000 won. Hanwha's previous closing price was 128,600 won.
Hanwha plans to optimize its business portfolio through a spin-off into infrastructure groups—defense and aerospace, shipbuilding and marine, and energy and chemicals, and finance—and Tech Life Solutions, including Hanwha Vision, Hanwha Momentum, Hanwha Robotics and Hanwha Galleria, and Hanwha Hotel & Resort. In addition, it is expected to continue pushing ahead with plans to enhance corporate value and strengthen shareholder returns.
Heungkuk Metaltech Securities revised its outlook for Hanwha's full-year consolidated results to sales of 80.4 trillion won and operating profit of 5.5 trillion won, with net income attributable to controlling shareholders of 1 trillion won.
Park Jong-ryeol, an analyst at Heungkuk Metaltech Securities, said, "The group's results will be driven by expanded global defense exports at core subsidiary Hanwha Aerospace and the reflection of high-margin volumes centered on LNG carriers at Hanwha Ocean," and added, "Hanwha Solutions will see profitability improve on the recovery of solar demand centered in North America and Europe, and Hanwha Life Insurance is expected to make a stable profit contribution thanks to the expansion of protection-type products and interest-rate stability."
Key investment points cited were sustained high growth in defense and shipbuilding, a turnaround in the energy division, stable cash generation in finance, and improved governance and stronger returns under the value-up policy.
Park said, "Along with expanded growth potential through a spin-off, the execution of canceling existing treasury shares held will serve as a model for other holding companies," and added, "In addition to boosting corporate value through growth, an active shareholder-return policy could enable a further re-rating of the share price."