Hanwha Aerospace expands export markets ... pursues up to 80% localization in Romania

[Financial News] On the 16th, Korea Investment & Securities said that the markets available for Hanwha Aerospace to export to continue to expand. It maintained its “Buy” rating on the company and lowered its target price from KRW 2 million to KRW 1.65 million. 
Jang Nam-hyun, an analyst at Korea Investment & Securities, said, “Hanwha Aerospace has established its own production base in Australia and begun mass production. In Romania, it is pursuing localization of up to 80%. In Spain, it has expanded the scope of cooperation to include technology transfers for the K9 series and the joint development of locally tailored platforms.” He added, “Its experience in local production and technology cooperation, accumulated across various countries, is expected to serve as a differentiating competitive advantage in securing new orders. Large-scale export projects underway in the Middle East, including in the UAE and Saudi Arabia, are also examples of existing weapon systems’ operational track records being combined with localization strategies.” 
Korea Investment & Securities forecast consolidated revenue of KRW 7.3595 trillion and operating profit of KRW 1.1079 trillion for the third quarter. The operating profit forecast is 8.7% below the consensus of KRW 1.2129 trillion. It also expects operating profit at its consolidated subsidiary Hanwha Ocean to fall short of market expectations.  
 



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