1. What’s happening with Hanwha Aerospace?

Hanwha Aerospace delivered solid results in the first half of 2023, driven by strong performance in the marine and defense sectors. The marine sector saw significant growth thanks to increasing demand for eco-friendly vessels, while the defense sector benefited from strong exports of K9 self-propelled howitzers.

2. What are the positives and negatives?

Positives:

  • • Robust growth in marine and defense sectors
  • • R&D investments for future growth drivers
  • • Efforts to strengthen financial health through capital increase

Negatives:

  • • High debt-to-equity ratio (278%)
  • • Short-term investment burden in the aviation sector
  • • Potential risks related to legal disputes and sanctions
  • • Cash outflow due to subsidiary’s rights offering

3. So, is it a good time to invest?

The current investment opinion is ‘Neutral’. While the growth potential is evident, factors such as high debt ratio, external uncertainties, and legal risks require careful consideration.

4. Investor Action Plan

Before making an investment decision, carefully consider the following:

  • • Sustainability of growth in marine and defense sectors
  • • Investment performance and profitability improvement in the aviation sector
  • • Financial risk management strategies
  • • Resolution of legal disputes and performance of new businesses

A long-term investment perspective and continuous monitoring of risk factors are crucial.