Hanwha Systems, 2Q Operating Profit 31.4 Billion KRW... Up 72.5% YoY

[Asia Economy Reporter Jeong Hyunjin] Hanwha Systems announced on the 30th that it recorded sales of 485.9 billion KRW, operating profit of 31.4 billion KRW, and net profit of 22.0 billion KRW in the second quarter based on consolidated financial statements. Compared to the same period last year, sales increased by 50.4%, operating profit by 72.5%, and net profit by 69.2%.

This performance exceeded the consensus of financial information provider FnGuide, which forecasted sales of 391.6 billion KRW, operating profit of 21.2 billion KRW, and net profit of 13.0 billion KRW.

The strong sales appear to be driven by increased revenue from large-scale projects in Hanwha Systems' defense sector. Hanwha Systems explained that these included the second mass production for the Air Defense Command and Control and Warning System (C2A) and the third mass production project for the Tactical Information Communication Network (TICN), the Identification Friend or Foe (IFF) Mode 5 performance upgrade, the development project of the multifunction radar (MFR) for the Long-Range Surface-to-Air Missile (L-SAM), and the completion of the Korean Joint Tactical Data Link System (JTDLS).

In the ICT sector, Hanwha Systems stated that it is focusing on the second half of the year to promote next-generation insurance core systems and next-generation enterprise resource planning (ERP) projects, based on orders for the MyData (personal credit information management) system and the next-generation system construction project for Koscom Fund Service. It also added that it is advancing AI-based businesses by enhancing the AI-based personalized learner service previously established at Chung-Ang University.

Kim Yeon-cheol, CEO of Hanwha Systems, said, "We are focusing on strengthening profitability by actively responding to market demand amid solid growth in our core businesses," adding, "Hanwha Systems is not complacent with current achievements and is accelerating business diversification through new aerospace and satellite communication businesses such as UAM in the 'New Space' era for greater leaps forward."