Shares of Hanwha Group are experiencing a surge on June 17 amid improved investor sentiment following news of a peace agreement between the U.S. and Iran. The group, which has a diverse portfolio including defense, shipbuilding, and energy, is seen as a beneficiary of reduced geopolitical risks in the Middle East, attracting buying interest.
According to the Korea Exchange, as of 11 a.m., Hanwha Aerospace shares rose by 77,000 won (6.51%) to 1.26 million won. The stock opened at 1.2 million won and peaked at 1.278 million won during the trading session.
Other stocks in the group are also showing gains. At the same time, Hanwha Ocean is trading up 6.50% at 137,600 won, while Hanwha Life has increased by 9.37% to 6,070 won. Additionally, Hanwha and Hanwha Systems are also on the rise, with increases of 3.83% and 1.79%, respectively.
Market analysts attribute the improved investment sentiment towards Hanwha Group stocks to the easing of geopolitical uncertainties following the U.S.-Iran peace agreement, which has revived interest in global risk assets.
Particularly, defense subsidiaries like Hanwha Aerospace and Hanwha Systems are expected to benefit from ongoing increases in defense spending in Europe and the Middle East, maintaining long-term growth expectations.
Positive outlooks for Hanwha Aerospace continue among securities firms. Hana Securities recently reported that the company's performance is expected to grow significantly in the second half of the year, maintaining a target price of 1.86 million won and a 'buy' rating.
Hana Securities researcher Chae Woon-sam stated, "We estimate a 62.7% growth rate in operating profit for the second half, a substantial improvement from 16.5% in the first half. This is due to the anticipated recognition of sales from the K9 and Cheonmu systems to Poland, which are expected to contribute more significantly in the latter half of the year."
He added, "Last year, most of the defense export revenue came from Poland, but this year, we expect a significant increase in contributions from Egypt, Australia, and other markets outside of Poland. We believe that defense sector growth will remain strong this year."
* This article has been translated by AI.
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