Hanwha Co., Ltd. Reports 1Q Operating Profit of 848.5 Billion KRW, Up 186% YoY (Update)

[Asia Economy Reporter Choi Dae-yeol] Hanwha Corporation announced on the 14th that its consolidated operating profit for the first quarter of this year reached 848.5 billion KRW, an increase of 186% compared to the same period last year.

Although sales decreased slightly to 12.8382 trillion KRW during the same period, the company reported that improved profitability led to results that exceeded market expectations by more than double. Net profit for the period rose 344% to 819.9 billion KRW. The decrease in sales was attributed by the company to the restructuring of some marginal businesses and efforts to strengthen business fundamentals.

The higher-than-expected profits were largely due to subsidiaries such as Hanwha Solutions and Hanwha Aerospace recording their best-ever first-quarter performances. Hanwha Solutions saw significant increases in operating profit and net profit compared to the previous year, driven by a strong petrochemical business. Hanwha Life Insurance achieved improved core insurance profits, and Hanwha Aerospace delivered strong results supported by solid performance in the defense sector and increased profitability in civilian businesses.

The company expects the positive earnings trend to continue beyond the first quarter. In the chemical sector, improved market conditions and expansion of eco-friendly energy businesses are expected to sustain solid profits. The defense sector is also anticipated to grow as mass production sales increase in the second half of the year. The insurance business is projected to see improved net profits due to stable premium income inflows.

While increasing investments in its own businesses, the company plans to strengthen its capabilities through new business orders. The global division has reinforced its precision chemical business, including products for semiconductors and displays, through investment in nitric acid facilities. The defense division expects expanded sales in new businesses such as laser weapons. The machinery division plans to focus on securing orders in growth sectors like secondary batteries and displays. The company will increase investments in new green new deal sectors such as hydrogen and solar power, and will actively develop aerospace businesses including satellites and air mobility to establish mid- to long-term growth engines.