[Click eStock] "Hanwha Aero Reflects Repetitive Production Effects"

On August 1, Hanwha Investment & Securities analyzed that Hanwha Aerospace continues to demonstrate the effects of repetitive production. The target price was raised to 13.5 million won.

In the second quarter of this year, Hanwha Aerospace recorded sales of 6.2735 trillion won and operating profit of 864.4 billion won. These figures represent increases of 168.7% and 156.3%, respectively, compared to the same period last year.

Bae Sungjo, a researcher at Hanwha Investment & Securities, explained, "In the second quarter, the ground defense sector achieved sales of 1.7732 trillion won and operating profit of 554.3 billion won," adding, "These are increases of 33.4% and 113.2%, respectively, compared to the same period last year."

He continued, "With the delivery of Cheonmu ahead of expectations, the annual delivery guidance is also being raised from over 50 units to over 80 units," and added, "This continues to prove the effects of repetitive production." He further stated, "Deliveries to Poland are also proceeding better than expected," and "Profitability improvements are being realized due to economies of scale."

He emphasized, "Starting from the second quarter of this year, the delivery of K9 and Cheonmu components for Poland has begun to be meaningfully reflected in sales," and added, "Even considering only the already secured orders, there is no need to worry about the delivery volume of K9 and Cheonmu for Poland for the time being."