[Click eStock] "SNT Dynamics, Expecting Additional Defense Transmission Orders"

Hana Securities forecasted on the 9th that SNT Dynamics' operating profit will surge this year.

Seongho Kim, a researcher at Hana Securities, stated, "Attention should be paid to the significance of SNT Dynamics' major order details," adding, "Last September, the contract for the K9 transmission assembly to Hanwha Aerospace and the contract for the transmission assembly for two other K9 export projects are expected to lead to additional orders."

He continued, "Hanwha Aerospace signed a contract worth 1.4 trillion KRW in July with the Romanian Ministry of National Defense for the K9 self-propelled howitzer, continuing K9 exports," and added, "SNT Dynamics exclusively supplies transmissions to domestic clients, including Hanwha Aerospace."

He emphasized, "Due to the reference effect of having Hanwha Aerospace as a client and the trend of domesticating parts, expectations for additional orders will remain valid going forward."

Researcher Kim analyzed, "The January 2023 contract to supply automatic transmissions for the Altay main battle tank to Turkey's BMC holds significance as an export contract to an overseas client."

He added, "Considering the multiple contracts from domestic defense companies, it is estimated that the pricing of domestic weapon systems has price competitiveness compared to global competitors."

He explained, "The prototype of the Altay main battle tank development applied a powerpack from a German company," and "through the SNT Dynamics supply contract, a mid- to long-term replacement is expected."

It is estimated that consolidated sales will reach 555.4 billion KRW and operating profit 93.2 billion KRW this year, representing increases of 14.3% and 124.0%, respectively, compared to last year.