Hankook & Company Group's automotive thermal energy management solutions corporations Hanon Systems set targets this year of 11 trillion won in sales and a 5% operating margin. It said it will strengthen practical growth momentum by pursuing new businesses and expanding its global aftermarket business.
Hanon Systems said on Jan. 5 that Vice Chairman and CEO Lee Su-il presented this year's management goals and mid- to long-term growth strategy in a New Year's address distributed to employees worldwide.
After posting its first-ever annual sales of 10 trillion won last year, Hanon Systems plans to keep the growth going with a target of 11 trillion won this year. At the same time, it identified restoring profitability to achieve an operating margin (EBIT) of around 5% as a core goal.
The strategy is to improve profitability and cash flow simultaneously by enhancing cost structure and operational efficiency, and to establish an execution-centered management policy. Once the ongoing rights offering is completed, it expects its debt ratio, which was about 246% as of the end of the third quarter, to improve to about 164%.
It is also accelerating a strategic pivot toward future growth. Hanon Systems last year set up a dedicated software organization and reorganized its global research and development (R&D) organization to strengthen efficiency in technology development and collaboration systems.
In particular, in a market where various powertrains such as battery electric vehicles (BEVs), hybrids, plug-in hybrids (PHEVs), and extended-range electric vehicles (EREVs) coexist, it is making technology capable of responding to automakers' multi-powertrain strategies and software capabilities a key pillar of mid- to long-term growth.
It will also actively seek new business opportunities in the age of artificial intelligence (AI). With the spread of AI data centers driving a surge in power and thermal management demand, it is reviewing new business opportunities such as data center liquid cooling systems and energy storage system (ESS) thermal management solutions.
It will also push to expand aftermarket sales. Centered on the global aftermarket task force established this month, it plans to scale up the business in earnest to make a tangible contribution to sales growth and improved profitability.
Lee said, "If last year was about focusing on improving management efficiency and fundamentals, this year will be about wrapping that up while executing the established mid- to long-term strategy and turning it into results," adding, "We will strengthen our fundamentals based on responsible management and pursue sustainable growth by expanding into new businesses."