[Market Focus] Hanwha Hits 52-Week High on Strong Earnings Expectations

Soaring to 61,000 Won

Hanwha shares surged on May 27. The buying momentum is attributed to growing expectations for strong earnings from subsidiaries such as Hanwha Aerospace.

As of 2:25 p.m. on this day, Hanwha's stock price was up 14.18% from the previous trading day, standing at 60,400 won. After opening at 53,300 won, Hanwha extended its gains, reaching as high as 61,000 won during the session and setting a new 52-week high.

Supported by robust performances from its core subsidiaries, Hanwha Aerospace and Hanwha Solutions, Hanwha posted consolidated sales of 16.6 trillion won in the first quarter of this year, up 33.8% year-on-year. Operating profit also jumped 355.1% to 1.1 trillion won, exceeding market consensus. There are also projections that Hanwha will continue to show earnings growth for the full year.

Park Jongryul, an analyst at Heungkuk Securities, said the previous day, "We are raising our forecast for Hanwha's consolidated sales this year to 69.8 trillion won and operating profit to 4.2 trillion won," and raised his target price for Hanwha from 58,000 won to 65,000 won.

He added, "If Hanwha takes a more proactive stance on shareholder returns, such as increasing dividends, share buybacks, and cancellations in line with the corporate value-up program, further revaluation of the stock price could be possible."