[Click eStock] "Defense Industry, Time to Focus on Its Essence"

Hana Securities analyzed on the 9th that although investment sentiment toward defense industry stocks is weakening, focusing on the fundamentals could actually present a good opportunity.

Researcher Wi Kyung-jae explained, "As martial law began and domestic political conditions became unstable, domestic defense stock prices have been declining," adding, "Compared to the two previous impeachment cases, the current drop in defense stock prices is larger."

He continued, "The rise in domestic defense stock prices has been driven by increased exports," and added, "It is an industry bearing the brand of the Republic of Korea."

Researcher Wi emphasized, "Countries such as the United States, Japan, and the United Kingdom have issued travel advisories to their citizens regarding travel to the Republic of Korea," and "Even Israel, currently at war, has warned of dangerous conditions in Korea and recommended reconsidering visits." He expressed concern that "given the global attention focused on the Republic of Korea at this moment, especially as it is based on anxiety, expectations for arms system export contracts may weaken."

He analyzed, "Focusing on the fundamentals, this could actually be a good opportunity," and added, "Despite the steep rise in stock prices, domestic defense stocks were not at burdensome prices." Furthermore, he explained, "The recent price decline due to changes in domestic and international situations presents an opportunity to buy at relatively low prices," and "Attention is needed for companies with growing earnings and those with high potential for increased orders."

Researcher Wi advised that interest in Korea Aerospace Industries, which still holds expectations for overseas orders, and Hanwha Aerospace, which is raising its profit levels based on high profitability, remains valid.

This content was produced with the assistance of AI translation services.