[Click eStock] "Hanwha Systems, the Pearl That Will Shine in the Future"

On the 11th, Daishin Securities raised the target price of Hanwha Systems from 26,000 KRW to 32,000 KRW, stating that the U.S. shipyard acquired by Hanwha Systems will not immediately contribute to earnings but its value will increase in the future.

Hanwha Systems produces various systems used in domestic defense weapons such as the K2 and K9 fire control systems. It also operates in diverse fields including surveillance and reconnaissance, command and control, avionics, and satellite business.

According to Hanwha Systems' consolidated financial statements announced on the 7th for the fourth quarter, sales reached 933.5 billion KRW, up 19.4% year-on-year, and operating profit was 29.1 billion KRW, an increase of 37.3%. However, one-time expenses such as legal and consulting fees related to the acquisition of the U.S. shipyard and year-end bonuses caused profits to fall short of expectations.

The performance of the U.S. shipyard, acquired with a 60% stake by Hanwha Systems and 40% by Hanwha Ocean, will be reflected from the first quarter of this year. Daishin Securities expects the shipyard to turn profitable only next year.

Analyst Lee Taehwan said, "Primarily, it is responding to the expansion of U.S. commercial shipbuilding, and plans to enter warship construction later through license acquisition," adding, "Considering the significant concern over the shortage of new warships in the U.S. Navy, the value of a production base in the U.S. will increase."