[Featured Stock] Hanwha Aero, Core Business Growth and Post-Division Stock Price Increase Expected

Hanwha Aerospace is on the rise as its defense business remains solid, coupled with expectations from the securities industry that the combined shareholder value will increase after the company split.

As of 9:30 a.m. on the 7th, Hanwha Aerospace is trading on the KOSPI at 272,500 KRW, up 8,500 KRW (3.22%) from the previous close.

The trading volume is 200,000 shares, with a trading value of approximately 52.6 billion KRW.

NH Investment & Securities raised the target price for Hanwha Aerospace to 330,000 KRW on the same day, a 10% increase from the previous target.

Researcher Lee Jae-kwang of NH Investment & Securities stated, "For the Polish K9 self-propelled howitzer, out of the basic contract for 672 units, 364 units have been confirmed (worth 5 billion USD), with 72 units delivered. Assuming about 60 units are delivered annually, the volume is secured until 2027." He added, "For the Chunmoo MLRS, 290 units have been confirmed (5.2 billion USD), and 35 units have been delivered."

Lee explained, "Considering the split ratio, the market capitalization of the newly established company to be split in September is expected to be between 1 trillion and 1.5 trillion KRW. Given that the operating profit in 2023 is around 100 billion KRW, this corresponds to about 10 to 15 times the operating profit."

He continued, "Considering that Hanmi Semiconductor's market capitalization is about 50 to 60 times its expected operating profit this year, it is judged that the combined value for existing shareholders could increase after the split." He also noted, "According to media reports, Hanwha Precision Machinery's TC bonder for HBM is expected to enter mass production starting in the second half of the year."