[Click eStock] "Hanwha Systems, This Year Marks the Beginning of Defense Exports and New Businesses"

[Asia Economy Reporter Ji Yeon-jin] Daishin Securities forecasted on the 23rd that this year will be the inaugural year for Hanwha Systems as defense exports and new businesses will be fully activated.

Lee Dong-heon, a researcher at Daishin Securities, predicted, "Based on core technologies such as communication systems, radar systems, fire control systems, and ICT, the civilian sector will expand, and with proactive capital increases securing investment funds, a continuous expansion like a cornucopia will occur."

The company’s order backlog at the end of last year was 5.8 trillion KRW, a 34% increase compared to the previous year. This was due to securing an order for the Cheongung surface-to-air missile (M-SAM) from the United Arab Emirates (UAE).

In the defense sector, they are developing the 425 satellite, multifunction radar, and the 'KDDX' combat system, as well as military communication satellites such as the 'ANASIS-II' communication system, the third phase of the Tactical Information Communication Network (TICN), and the Cheolmae-II multifunction radar.

The researcher stated, "Although annual orders are expected to decrease based on the UAE order, the order backlog is expected to be maintained. There is also a possibility of orders from Saudi Arabia and Southeast Asia." He added, "Saudi Arabia’s orders are expected to be larger than those of the UAE, and the radar for the domestic M-SAM is expected to shift from passive to active (AESA)." Regarding defense exports, he explained, "It is difficult to estimate the exact timing of formal contracts, but demand continues to be stimulated by the Ukraine crisis and Middle East conflicts."

Regarding the satellite business, they plan to proactively launch their own satellites throughout the year in preparation for surveillance reconnaissance satellites and ultra-small SAR satellite projects, and the communication satellite business through OneWeb is also expected to expand.