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K9 self-propelled howitzers. (photo = Hanwha Aerospace) |
[Alpha Biz= Reporter Kim Sangjin] On the 16th, Daishin Securities initiated coverage on Hanwha Aerospace (012450) with a "Buy" rating and a target price of 430,000 KRW, highlighting explosive profit growth. The previous day's closing price was 311,500 KRW.
Daishin Securities noted that Hanwha Aerospace restructured its governance in September, excluding security and precision machinery businesses, thus establishing a business focus on aerospace and land defense sectors. The company has listed subsidiaries such as Hanwha Systems (272210) and Satrec Initiative (099320), and holds a 23.14% stake in Hanwha Ocean (042660), completing a portfolio that covers all battlefield environments, including land, sea, air, and space.
The firm also praised Hanwha Aerospace for its K9 self-propelled artillery, which holds over a 50% share in the global market, noting that its export margin is relatively high compared to domestic defense companies, benefiting from favorable competition. Hanwha Aerospace has also exported products like the K21 infantry fighting vehicle, Chunmu multiple rocket launcher, and Cheongung M-SAM launchers, with a portfolio of products highly competitive in terms of orders.
Daishin Securities projected a 90% growth in operating profit this year, driven by the delivery of export contracts such as 60 K9 units and over 40 Chunmu units to Poland. The firm also expects strong revenue and profit growth from pre-signed export contracts between 2025 and 2027.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
