[Featured Stock] Hanwha Systems Rises Over 7% on Defense and Space Growth Expectations

Hanwha Systems' stock is showing strength as profitability improves due to the expansion of defense exports and the growth of the space industry expected following the election of U.S. President Donald Trump.

At 10:32 a.m. on the 11th, Hanwha Systems was trading at 24,900 KRW, up 1,700 KRW (7.33%) from the previous trading day.

In the third quarter of this year, Hanwha Systems reported consolidated sales of 639.2 billion KRW and operating profit of 57 billion KRW, increases of 3.0% and 43.6%, respectively, compared to the same period last year. Notably, the operating profit exceeded the market consensus forecast by 15.6%.

On the same day, Lee Seung-woong of Yuanta Securities gave Hanwha Systems a "Buy" rating with a target price of 28,000 KRW. He added, "Profitability is expected to continue improving next year," and explained, "Currently, the export portion within the defense sector's order backlog is estimated to be in the 30% range. Next year, sales recognition of the Middle East-targeted Medium-range Surface-to-Air Missile (M-SAM) Multifunction Radar (MFR) will increase, expanding the export portion within the defense sector to around 20%." Additional orders for the Middle East M-SAM MFR are also anticipated, suggesting that the export ratio will continue to grow in the mid to long term.

Furthermore, with expectations for President Trump's space-related industrial policy support, which is favorable to Elon Musk, CEO of SpaceX, Hanwha Systems, which stands out in satellite manufacturing-related businesses, is emerging as a beneficiary stock.