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K9 self-propelled howitzers. (photo = Hanwha Aerospace) |
[Alpha Biz= Reporter Kim Minyoung] Samsung Securities has revised upward its target price for Hanwha Aerospace from the previous 260,000 Korean won to 295,000 Korean won on June 15th, expecting growth in performance due to its competitive position in the ground defense sector and concentrated deliveries to Poland in the second half of the year.
The brokerage forecasts Hanwha Aerospace to achieve an operating profit of 185.6 billion won in the second quarter, marking a 128.6% increase year-on-year. Sales are estimated to grow to 1.2 trillion won, up 104.5% from the same period last year, driven by the inclusion of Polish delivery volumes that were absent in the first quarter.
In April, 6 K9s and 18 Chonma vehicles were delivered, followed by 12 Chonma vehicles arriving in Poland in June. It's anticipated that these deliveries alone will contribute to sales by over 500 billion won, with the assembly process of Chonma vehicles suggesting recognition in the third quarter due to time required post-delivery.
The aerospace division is expected to see a 17.2% revenue growth to 471.1 billion won during the same period, attributed to increased sales in the aviation and space sectors despite a slight profit impact from GTF engine deliveries in the first quarter. Looking ahead to the second quarter, Samsung Securities anticipates a continuation of similar trends with no significant impact on profitability.
The vision sector is projected to grow by 6.1% year-on-year, driven by favorable exchange rates and increased market share in the US and Europe, although profitability may see a slight decline due to the inclusion of previously unreleased development costs from the first quarter.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
