[Click eStock] "Hanwha Aerospace 'Continued Growth'... Target Price 420,000 Won"

Hyundai Motor Securities maintained a buy rating on Hanwha Aerospace on the 6th and raised the target price from 270,000 KRW to 420,000 KRW.

On the day, Minjeong Kwak, a researcher at Hyundai Motor Securities, said, "There was a risk that the war between Russia and Ukraine could undergo rapid changes under the second Trump administration," but added, "There is also a possibility that a self-help atmosphere will intensify among European allies, so order momentum and earnings growth will continue."

Hanwha Aerospace's Q3 performance this year recorded sales of 2.6312 trillion KRW, operating profit of 477.2 billion KRW, and an operating profit margin of 18.1%. The growth in performance was driven by increased domestic and export volumes in the ground·defense sectors and the solid performance of Hanwha Systems.

Performance growth is expected to continue in the fourth quarter as well. Researcher Kwak forecasted, "Even if a ceasefire declaration is made regarding Russia-Ukraine and Israel·Hezbollah under the Trump administration, the trend of increasing defense spending, especially in Eastern Europe, is expected to continue in Europe."

Researcher Kwak stated, "With the completion of the spin-off in September, the business structure has been simplified as a pure defense company," adding, "The valuation (stock price relative to corporate value) criteria have become clearer."

He also explained, "On the 2nd, the Polish government announced that it had secured funding of 4.2 billion USD (approximately 5.9 trillion KRW) from the Polish National Development Bank (BGK) to purchase K9 self-propelled howitzers and Chunmoo," and added, "Next year, growth is expected to continue with export prospects in Romania, Latvia, and Brazil, as well as ongoing export momentum of the K9 self-propelled howitzer to India, Vietnam, and Bulgaria."