[Special Stock] Hanwha Aerospace with 3.6 Trillion Won Capital Increase, Down Over 14%

The stock price of Hanwha Aerospace, which announced a large-scale paid-in capital increase, is plummeting.

As of 9:19 a.m. on the 21st, Hanwha Aerospace was trading at 619,000 won, down 103,000 won (14.27%) from the previous trading day.

The day before, Hanwha Aerospace announced that it would carry out a paid-in capital increase worth 3.6 trillion won to secure funds for future growth engines. Through this, the company plans to establish overseas bases in ground defense, shipbuilding & marine, and marine defense sectors to leap forward as a top-tier player in the global defense, shipbuilding & marine, and aerospace fields.

On the same day, DS Investment & Securities lowered Hanwha Aerospace’s target price from 920,000 won to 750,000 won. The investment rating was also downgraded from buy to neutral.

Yang Hyung-mo, a researcher at DS Investment & Securities, said, "Hanwha Group’s future blueprint, which requires expanding global defense and shipbuilding & marine bases to become a global top-tier, is understandable in theory," but added, "However, uncertainties and potential risks are concerning."

On the same day, Samsung Securities also stated, "This was an unexpected surprise capital increase. It is negative for investor sentiment," and said, "Reflecting the uncertainty, we are downgrading the investment rating from buy to hold."

Han Young-soo, a researcher at Samsung Securities, pointed out, "After the recent sharp rise in stock price, to justify further upside potential, specific information on new investment destinations and expected investment effects should be disclosed."

Meanwhile, the Financial Supervisory Service has decided to conduct a focused review of Hanwha Aerospace’s paid-in capital increase. This decision was made considering the record-breaking scale and the fact that it is the first paid-in capital increase since 1999. The Financial Supervisory Service stated, "We will closely examine whether important information necessary for investment decisions is thoroughly disclosed, and resolve market uncertainties through a prompt review."