[Infostock Daily= Reporter An Hoe Hyun] According to Daishin Securities on the 23rd, Hanwha Aerospace's operating profit for the third quarter of this year is expected to be 74 billion won. This is a 29% increase compared to the same period last year.
Sales are expected to rise 7% year-on-year to 1.412 trillion won compared to the same period last year. Initially, sales and operating profit compared to the stock market consensus exceeded 6% and 18%, respectively.
Hanwha Aerospace is expected to improve its performance due to strong defense business entering the second half of the year, traditional peak season. COVID-19 is feared to cause a drop in the performance of the civil requirement engine parts business, but it is expected that it will not have a significant impact as its total sales ratio is only around 10%.
In Hanwha Aerospace, the defense business is a major area that accounts for half of the total sales, and due to the nature of the industry, it is somewhat out of COVID-19 influence. Domestic margins such as military engines are expected to increase in the third quarter of this year.
"The fall in stock prices is due to concerns over aviation engine parts, but sales of aviation engine parts account for only about 10% of the total sales, and all other divisions grow," the company said, suggesting the investment opinion BUY and 35,000 won, which raised the target stock price by 6.1%.
Reporter An Hoe Hyun ahh@infostock.co.kr
