Hanwha Aerospace Named Top Defense Pick After K239 Chunmoo Export to Croatia; Amorepacific Strengthens Marketing Focus on Amazon and TikTok Over Sephora [Stocktopia]

[Financial News] Here is a summary of reports from major securities firms as of the morning of September 14.
Hanwha Aerospace has confirmed the long-term sustainability of its order pipeline, with its localization base in Poland leading to additional exports within Europe through its K239 Chunmoo export contract with Croatia. The company remains the top pick in the defense sector.
Amorepacific is expected to see global growth accelerate from the third quarter of this year as it uses derma cosmetics and hair care as growth drivers and shifts its marketing focus from Sephora to Amazon and TikTok. Orion was also assessed as likely to receive a valuation re-rating, supported by stable earnings growth based on product strength and expanded shareholder returns, including its first quarterly dividend, even if the benefits of foreign exchange movements diminish due to the won’s appreciation.
◆ Hanwha Aerospace (012450)— Korea Investment & Securities / Analyst Jang Nam-hyun
— Target price: 2 million won (maintained) | Previous closing price: 1.081 million won
— Investment opinion: Buy (maintained)
Korea Investment & Securities maintained its target price of 2 million won and its top-pick status for Hanwha Aerospace in the defense sector, saying the company’s K239 Chunmoo export contract with Croatia demonstrates the foundation for sustained long-term exports beyond a short-term order.
The project involves Polish defense company WB Electronics supplying the command-and-control system. The report highlighted that this is the first case in which the local partnership network established in Poland is being used for a third-country project.
Analyst Jang Nam-hyun assessed, "The significance of this contract lies in the fact that the strengths of existing Korean defense companies—excellent performance and fast delivery—continue to serve as export advantages, while additional market expansion is possible based on local production facilities established in Europe."
He added, "In new markets such as Western Europe and the United States, where localization requirements are high, the entry barriers to securing orders are being lowered, and the business model is shifting from exports centered on product competitiveness to one that combines local production and supply chains."※ K239 ChunmooThe K239 Chunmoo is a Korean multiple rocket launcher (MRL) developed by Hanwha Aerospace. It is an offensive weapon capable of launching multiple rockets in succession to strike a wide area simultaneously. After large-scale exports to Poland, Croatia has now become another adopting country.
◆ Amorepacific (090430)— KB Securities / Analyst Son Min-young
— Target price: 190,000 won (maintained) | Previous closing price: 140,500 won
— Investment opinion: Buy (maintained)
KB Securities maintained its target price of 190,000 won, saying Amorepacific’s global growth will accelerate as the company strengthens marketing centered on social media, Amazon and TikTok (SAT), following the strategy it presented at an investor day on the 11th.
Amorepacific announced plans to use derma cosmetics (AESTURA and ILLIYOON) and hair care (Mise-en-scène and LABO H) as its main growth drivers, generating 1 trillion won in revenue from each business by 2030. It also plans to shift marketing investment away from its previous focus on Sephora and toward online channels where consumers actually discover and purchase products.
Analyst Son Min-young assessed, "The company is securing medium- to long-term growth drivers based on product competitiveness in high-growth categories such as derma cosmetics and hair care." She added, "It is entering a phase of full-scale global business expansion by strengthening marketing centered on social media, Amazon and TikTok."
She forecast, "Full-scale results will emerge from the third quarter of this year through the third quarter of next year."※ Derma cosmetics (dermocosmetics)The term combines “dermatology” and “cosmetics.” It refers to functional cosmetics developed for people with skin concerns, such as sensitive or troubled skin, after their safety and efficacy have been verified. Because these products are closer in nature to dermatological prescriptions than ordinary cosmetics, clinical data and ingredient technology determine their competitiveness.
◆ Orion (271560)— DS Investment & Securities / Analyst Jihye Jang
— Target price: 180,000 won (maintained) | Previous closing price: 119,300 won
— Investment opinion: Buy (maintained)
DS Investment & Securities maintained its target price of 180,000 won, forecasting that Orion’s third-quarter revenue and operating profit will rise 12% and 10%, respectively, year on year, continuing double-digit growth.
Analyst Jihye Jang said, "Combined revenue for July and August was 604.6 billion won (+13% YoY), while operating profit reached 96.4 billion won (+8% YoY)." She added, "In September, we expect top-line growth from the expansion of new products centered on growth channels in each country."
She also said, "The recent appreciation of the won will reduce the foreign-exchange benefit, but a re-rating is expected as the company expands shareholder returns while delivering stable earnings growth based on its product strength."
Orion earns money overseas and converts it into won for reporting purposes, so a stronger won reduces translated profits. Nevertheless, analysts say the company’s earnings continue to grow steadily on the strength of its products, while shareholder returns are also expanding, which could lead the stock to receive a higher valuation.

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