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Hanwha Aerospace Investment Analysis – May 2025
Company Overview
- Company Name: Hanwha Aerospace Co., Ltd.
- Founded: 1977
- Headquarters: Changwon, Gyeongsangnam-do, South Korea
- Market: KOSPI (KRX)
- Ticker: 012450.KQ
- Main Businesses: Aerospace engines, defense systems, launch vehicles, autonomous systems, eco-friendly marine propulsion
- Key Affiliates: Hanwha Systems, Hanwha Defense, Hanwha Ocean
Business Summary
Hanwha Aerospace is a major South Korean defense and aerospace manufacturer. Starting with gas turbine services, it now plays a critical role in Korea’s national projects including the KF-21 fighter jet and the Nuri rocket. It also develops cutting-edge military tech such as L-SAM missiles and combat robotics.
Q1 2025 Financial Highlights
- Revenue: KRW 5.48 trillion (YoY +278.5%)
- Operating Profit: KRW 560.8 billion (YoY +3,068%)
- Net Profit: KRW 209.4 billion
FY2025 Outlook
- Estimated Revenue: ~KRW 30 trillion
- Estimated Operating Profit: ~KRW 3 trillion
- Projected Sales Growth: +107.7% YoY
Key Growth Areas
- Aerospace: Supplies engines for KF-21, partnerships with GE and Pratt & Whitney
- Space Technology: Liquid rocket engines, satellite and launch system R&D
- Defense: K9 self-propelled artillery, L-SAM systems, exports to Europe and the Middle East
- Autonomous Warfare: Combat robots (Arion-SMET), UAVs
- Green Marine Solutions: Electric propulsion systems, hydrogen-powered submarines
Global Strategy
- Expanding facilities in the U.S., Poland, Vietnam, and Australia
- Strategic defense exports to Saudi Arabia, Romania, and Poland
- Raising KRW 1.3 trillion in capital for growth
Investment Highlights
- Strong global demand for defense exports
- Participation in national aerospace and space projects
- Diversified portfolio with growth in autonomous and eco-tech sectors
- Stable revenue from OEM partnerships with major aerospace firms
Key Risks
- Share dilution from large-scale capital raise
- Uncertainty in commercialization of space and unmanned systems
- Geopolitical and regulatory risks in export markets
- Potential cost overruns in R&D projects
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