Hanwha Systems is showing strength in the market, buoyed by positive earnings forecasts and increased target prices from analysts.
As of 2:16 PM on October 19, Hanwha Systems shares were trading at 79,800 won, up 800 won (1.01%) from the previous trading day, according to the Korea Exchange. The stock opened at 77,800 won and briefly surged to 82,600 won during the session before pulling back slightly while maintaining an upward trend.
Analysts attribute the improved investor sentiment to optimistic projections for the third-quarter earnings and the expansion of air defense projects in the Middle East.
Baek Joo-ho, a researcher at Hyundai Motor Securities, noted in a report that Hanwha Systems is expected to meet the market consensus of 1.079 trillion won in revenue for the third quarter, with operating profit projected to exceed the consensus of 60 billion won by 20%. He added that while a rise in self-investment development costs is anticipated to lower profitability compared to the previous quarter, if the actual spending is lower than market expectations, results could surpass consensus estimates.
He also highlighted the focus on the expansion of medium-range surface-to-air missile (M-SAM) production and the strengthening of integrated system roles. With ongoing production in the United Arab Emirates, mass production in Saudi Arabia and Iraq is expected to begin in 2027. If the scope of supply expands from existing radar and electronic equipment to integrated air defense packages, there could be opportunities for mid-term growth and additional orders.
As a result, he raised the target price for Hanwha Systems by 2.2% to 93,000 won while maintaining a 'buy' rating.
* This article has been translated by AI.
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