[Click eStock] "Hanwha Aero Has Long-Term Growth Drivers in Aerospace"

On January 14, LS Securities analyzed that Hanwha Aerospace possesses long-term growth drivers in the aerospace sector. The target price was raised from 1.25 million won to 1.52 million won.

Choi Jeonghwan, a researcher at LS Securities, stated, "Going forward, ground defense performance will be bolstered by mass production sales of K9 self-propelled howitzers in Australia and Egypt, as well as by increased ammunition sales." He added, "The recent third contract for Cheonmu signed with Poland, worth 5.8 trillion won, specifically covers the local production of Cheonmu guided missiles."

He further noted, "As the Cheonmu platform expands within Europe, sales of locally produced guided missiles are also expected to gradually increase."

He predicted, "Concerns about a decrease in order backlog are excessive, considering Hanwha Aerospace is pursuing contracts for the Romanian IFV, the Saudi MNG project, and the rising demand for multiple rocket launchers and self-propelled howitzers in Western Europe, Northern Europe, and the South China Sea."

Additionally, he emphasized, "In the long term, Hanwha Aerospace is continuing to develop wheeled self-propelled howitzers to bid for the U.S. next-generation self-propelled howitzer project," and "The selection of a site for the U.S. propellant plant appears to be entering its final stages."

Researcher Choi explained, "In the aviation sector, Hanwha Aerospace is jointly developing the GA-STOL in collaboration with General Atomics and plans to produce the airframe and engine domestically." He continued, "General Atomics is expected to utilize Hanwha Aerospace products to avoid ITAR restrictions and secure profit margins, and the companies will continue their partnership as a bridgehead into the global unmanned aerial vehicle market."

It is estimated that in the fourth quarter of last year, Hanwha Aerospace achieved consolidated sales of 8.6 trillion won and operating profit of 1.234 trillion won. Compared to the same period last year, sales increased by 226.8%, while operating profit decreased by 6.1%.